Jones Soda (JSDA)

[Chart Addict]

Not a double top as I see it.

The RSI is quite revealing in this regard. This indicator does not necessarily travel with 30 and 70 marking the boundaries between oversold and overbought. It varies from one security to another, and it would appear that JSDA can tolerate RSI levels in excess of 70 for some days before pulling back.

Its lower (oversold) boundary appears to be between 30 - 40, as shown by the red line on the RSI.

Note the three points of contact with the red line on the RSI, the first of which was at $0.38 prior to the breakout, with the second and third RSI bottoms being in the range of $0.625.

During the four days in which price encountered overhead resistance (circled in blue) the RSI was significantly lower than it was at prior highs along the way, suggesting that JSDA was losing steam and about to pull back.

In order for JSDA to penetrate the resistance at R1, its RSI will almost certainly need to penetrate the overhead resistance (blue line) on the RSI in the range of 60.

As of today, May 12, pre-market, it would appear to have bottomed out, according to the RSI, and be on the rebound for another test of overhead resistance. Of course, in two hours of time the chart may well paint a completely different picture.