I'm starting to "see things" in RSYS. Perhaps, it a mirage or I'm gettin' carried away here, but I'm studying it whenever I get time. It's a busy weekend, thou...
It's starting to look like a bottom Head and Shoulders formation to me, an upside down H&S so to speak. The bottom of the head is at 38, the left shoulder is 52 and we'll start forming the right shoulder when it hits 52 this week. 52 or so might be the neckline. If true, there should be a pull back to the 45 level, then a blowout to 66. That's 52-38=14 point move up above the neckline. I'm trying to figure out every possible angle to this to try to get confirmation.
So far I've found no way to confirm this speculation on my part. As you know, up until now, I've been convinced that RSYS is in a downtrend that will ultimately take it down to fill the gap it left at the 30 level back in late July. I thought that once it fills that gap, then it could resume the long term uptrend. Now, I'm squarely in the middle on this one, sittin' on the fence, trying to figure out how to make money especially if I choose the wrong scenario and the other occurs...
I think that the price action at 52 is critical to figuring out the trend.
Alex
PS. I can't find a way to place a stop in on RSYS that wouldn't take you out lower than if you watch it closedly and get out when you get a feel for how the tape's runnin'... If you can watch CNBC, you've got a big advantage. You should pay more attention to John Murphy than Maria, although she's much more pleasant to watch. The perfect Christmas gift for anyone who reads the SI threads is his book, "The Visual Investor, How to Spot Market Trends". He covers all the latest popular technical indicators, explaining when and where they are most effective... I must admit that I paraphrase/plagerize things from his book in some of my messages. I'll try to cite my sources better in the future. You can order this book and others from amazon.com, but probably won't get it until after Christmas. I'm not endorsing amazon.com, haven't tried them, but they have an extensive inventory of books on TA. Run a search using the words Technical Analysis and see all the books you get. |
