Brother Bum,
I decided to take a different approach to RRI. If I were on the computer at the time, I would have sold the open and taken those gains. Since I wasn't, and I didn't sell, I decided to take a longer term view by looking at the weekly chart.
There are 4 things that convinced me to leave my shares on the table.
1. The price just recently broke through the 50 week moving average on decent volume. This is always bullish.
2. The relative strength indicator is still rising. It's tough to sell shares that are trending when the relative strength indicator is on the rise.
3. The ADX indicator which gauges the buyers vs sellers is in one of the most bullish modes you could expect. You want to be on board when the green line crosses up and over the red line, with green up and red down. This confirms that RRI is switching from a trading range stock into a trending stock. You play a trending stock much different than a trading range stock.
4. And, most important, stocks prices are all about supply vs demand. In looking at the price per volume bars, to the left of the chart, RRI has worked through most of the overhead supply. There are very few people who bought the stock and are still underwater. This will be one less thing to hold RRI back.
The price may consolidate or pull back a little but, as good as the weekly chart looks, as a rule, the longer term chart dictates price action.
I don't know when the FERC meeting is. I'd appreciate a heads up on that. Other than that, there is very little holding RRI back, from a technical standpoint.
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dabum |
