Wednesday, September 12, 2018

How to spot Buying Price using RSI Oversold? OMG?! Natu-NOW?

Now is one of the aspirant bidder player to be a Telco in Philippines. I noticed that stock are playing by emotions of the retailer. As you can see from the photo below it drop too much 7.79 pesos down to 7.00 closed to 7.15 dramatically down 9.22% just for one day dated September 11, 2018 (Monday) with oversold RSI 21.

Psychologically thinking it may reach the last support 6.67 to 6.82. As a trader we always have a reason before we buy. It could be the opportunities to test buy for bounce play until the symmetrical pattern break. Potential 5% to 10% gain is probably possible. If I am wrong must cut without mercy up to 3%. 

On the next day from the Opening Market gap up 3% occurred buy on rally happened. I haven't sell my position yet, not being greedy but because I noticed EMA and MA indicator crossed sign of reversal, buy signal for my second tranche. With one hour time frame the RSI pointing upward . The candle show Bullish Engulfing pattern.

 Buy: September 11, 2018. 
First Buying Price: 7.08
Second Buying Price : 7.58
Selling Price : 7.88
Gain Profit : 9.98% and 2.72% respectively
Reason For Buying: Massive Selling candidate for bounce RSI 21 Oversold RSI.
Reason for Selling: RSI Breakout Bearish Divergence
Holding Period: 2 Trading Days

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