The 56 Point TA; Charts With an Attitude Message Board

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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude

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To: scott ma who wrote (7738)	11/16/1997 5:42:00 PM
From: Doug R	Read Replies (2) of 79468

Scott, Oversold is a technical indication seen in Wilder's Relative Strength Index, stochastics, MoneyFlow and the commodity channel index. In a stock that has an intermediate-term or long-term uptrend that is expected to continue, short-term periods of these indicators are best used in identifying an oversold condition. Using an 8-day or lower RSI and 7, 3, 10 or lower stochastics and an 8-day or lower MoneyFlow indicator and a 13-day or lower CCI, it is quite obviously oversold. I always use a 3-day RSI (and other stuff) when making very short-term timing assessments. The 3-day RSI for RLLY indicates that the stock is so oversold that it may take 2 days for the situation to resolve itself. After that, RLLY should get moving. Stocks that are long-term oversold sometimes take a year or more to turn around. RLLY's intermediate-term technical profile is in the area of uptrending technical support while the long-term is not nearly oversold (having moved out of the long-term oversold area in May '96) but is moving up into the very bullish threshold area. This looks like a technically important week or two coming up for RLLY. (the fun part! ;-) Doug R

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