It recently hit the upper rail of a trend channel and there’s a secondary layer of resistance with the 50-day moving average just overhead.
Trending higher since October, the stochastic indicators are in oversold territory and made a bullish crossover last night.
Trending higher over the last nine months, it’s at the lower rail of a well-defined up channel.
Trending lower over the last four months, it’s now overbought based on both the RSI and the stochastic indicators with the latter making a bearish crossover last night.
With the weekly stochastic indicators hitting oversold territory and the $80 level now acting as support, it looks ready to rally.
Its trend channel is tight and the risk/reward relationship makes sense as the stochastic indicators made a bullish crossover last night.
There were a couple of developments on the chart of the underlying stock that got my attention.
The chart shows a downward sloped trend channel and the stock hit the upper rail yesterday with stochastic indicators in overbought territory.
Trending higher since March, the underlying stock is hovering near the lower rail of a trend channel and the stochastic indicators are in oversold territory.
We’re targeting a potential 75% return by mid-August.