VRX warning: overbought and RSI oscillator in divergence
I haven't taken position since VRX released its q1 because I was not very convinced about its fundamentals. (Nontheless good long opportunities have come in, but my strategy is also to combine foundamentals and techical analysis, especially for such volatile stock). On top of it, EPS turned out negative. Now we have situation where the price is clearly in the overbought area plus RSI is flagging up a divergence as the last pick of Friday is lower than the pick happened on Wednesday. I recommend to watch it out carefully as we haven't clear signs of short but signs of closing long position.
Price has gone far from the main uptrend line as showed in the picture
Another consideration is that the price has reached a key resistance level around 25.90 as I had previously discussed some time ago.
I expect a retracement which might be quite consistent as it rallied more than 30% in the last few months. I would use the line and the Fibonacci retracement for further analysis.
Price has gone far from the main uptrend line as showed in the picture
Another consideration is that the price has reached a key resistance level around 25.90 as I had previously discussed some time ago.
I expect a retracement which might be quite consistent as it rallied more than 30% in the last few months. I would use the line and the Fibonacci retracement for further analysis.
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