CC, RRI should meet some resistance around the 4.40 - 4.50 range. The stock is an uptrend on good volume. One could reasonably expect some profit taking, but it depends on how much profit one has as to whether they should let it run or lock profits in.
I'm going to use the 10 dma as my guide until RRI trades above the 200 dma. Then I'll switch to a longer term indicator.
stockcharts.com[h,a]daclyiay[pb50!b200!b10!i!f][vc60][iut!Lh14,3!La5,17,9!Lg10]&pref=G
Although a stock can be overbought, it can stay overbought for a long time. Take a look at this stock. It stayed overbought for three months before giving up gains.
stockcharts.com[h,a]daclyiay[d20020824,20021223][pb50!b200!b10!i!f][vc60][iut!Lh14,3!La5,17,9!Lp13,8,8]&pref=G
I usually key off volume when dealing with overbought scenarios. As long as the volume supports such a move, stick with it until you see a day where the price is down on huge volume. Or, if you see a stock heading into resistance, or making new highs on low volume, take the money and run.
dabum |
