Trending higher over the last six months, the stock is in oversold territory and made a bullish crossover last night.
The underlying stock just hit the lower rail of of a six month trend channel and the stochastic indicators made a bullish crossover while in oversold territory.
Below a trend line since late February, there have been a series of lower highs over the last month and the stock just hit the trend line.
It’s overbought based on both the 10-day RSI and the stochastic indicators with the stochastics making a bearish crossover last night.
In a downwardly sloped trend channel over the last two months, it’s hitting the upper rail. The stochastic indicators reached overbought territory and made a bearish crossover on Friday, as well.
It’s my “Option Trade of the Day”.
The underlying security looks to be in a similar setup to late January when it nearly doubled in six weeks.
It’s overbought and made a bearish crossover last night.
In a downward sloped trend channel since last August, look for it to make another leg lower in the next few weeks.
It’s overbought and the chart shows a series of lower highs over the last couple of months.