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Sunday, February 25, 2018 4:59:17 PM
Technical Analysis - RXMD annotated daily chart.
1 - The RSI is overbought, however, the maximum is at 100, so still has a little room to the upside.
2 - The +DI is almost at the same level where it pulled back on the first run to .042.
3 - The MACD is also too high.
4 - The main supports are now those two green trendlines, so if the stock pulls back, will support on that point 5, more or less at .065.
5 - Just to explain why I said that the stock could pullback to around .036, when it ran to .046. It is very simple. This is a technical run, supported by fundamentals, but, a technical run, without a doubt, so if the stock bounced exactly when touched the trendline(point 3, resulting of the connection of points 1 and 2, and, extension of that line), it could have touched again the trendline, at the time at .036(point 4). It is very simple to understand this, if you look at this chart.
Stocks are not fireworks, that run directly to the top. Stocks form supports and resistances. Both can have a form of a trendline, and, when the PPS touches a trendline, it bounces there.
Prediction for next week: .1 is a psychological barrier(round number), and, the stock is already in overbought territory, however, I already saw stocks running for weeks inside the overbought zone(above the RSI70 line), so it is very difficult to say what will happen next week. It may pullback to touch again the trendline, to cool down the indicators, and, gain momentum to break .1, or break .1, and, only then make a pullback to test that same .1 as support. Anyway, in any of the above case scenarios, .1 will be broken, if not next week, the one after.
Daily chart
Like I said on my analysis before, RXMD will run to .10 - .15, or even maybe .20.
1 - The RSI is overbought, however, the maximum is at 100, so still has a little room to the upside.
2 - The +DI is almost at the same level where it pulled back on the first run to .042.
3 - The MACD is also too high.
4 - The main supports are now those two green trendlines, so if the stock pulls back, will support on that point 5, more or less at .065.
5 - Just to explain why I said that the stock could pullback to around .036, when it ran to .046. It is very simple. This is a technical run, supported by fundamentals, but, a technical run, without a doubt, so if the stock bounced exactly when touched the trendline(point 3, resulting of the connection of points 1 and 2, and, extension of that line), it could have touched again the trendline, at the time at .036(point 4). It is very simple to understand this, if you look at this chart.
Stocks are not fireworks, that run directly to the top. Stocks form supports and resistances. Both can have a form of a trendline, and, when the PPS touches a trendline, it bounces there.
Prediction for next week: .1 is a psychological barrier(round number), and, the stock is already in overbought territory, however, I already saw stocks running for weeks inside the overbought zone(above the RSI70 line), so it is very difficult to say what will happen next week. It may pullback to touch again the trendline, to cool down the indicators, and, gain momentum to break .1, or break .1, and, only then make a pullback to test that same .1 as support. Anyway, in any of the above case scenarios, .1 will be broken, if not next week, the one after.
Daily chart
Like I said on my analysis before, RXMD will run to .10 - .15, or even maybe .20.
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