This 60-minute COMP chart illustrates the relationship between the RSI 30 level and a bounce:
stockcharts.com[h,a]eaclyyay[d40][pb20!b50!b200!c13!c20!c50!i!d20,2!f][vc60][iub14!la12,26,9!lg!li10,10!lh5,5!lp14,3,3!ll14][j8221256,y]&listNum=1
If you buy at RSI 30 on the 60-minute, you'll probably be within 20-25 points of a local bottom. Ideally, the MACD should be nearly at or below the -10 level to trigger the buy.
This appears to indicate a local low could be around the 1319 COMP level, setting up a test of overhead resistance in early January.
Here's the daily with some trendlines pointing to 1319 also. That's also where the lower BB on the daily is currently:
stockcharts.com[h,a]dhclyiay[db][pb20!b50!b200!c20!d20,2!f][vc60][ilb14!la12,26,9!lg!li10,10!lh5,5!lp14,3,3!ll14][j6757933,y]&listNum=1
Last week I mentioned how once we are below the 50SMA we tend to stay below it. We've been below it all but one close since we closed below it last week.
Looking at a chart from last winter, today's weekly close is similar to the late January close around COMP 1946. We dropped 13% after that.
After expiration, it's lining up for a drop to the 1160-1220 level. I'm not even sure we'll be able to get to the 1400 level on a bounce. I hope we do, as it will make a great shorting op. |
