by Jeff Pierce, Zentrader
EMES put in a very bearish weekly candle today, taking out all of last week’s gains. This stock will likely see the low $90′s before $150, but all is not lost for the bulls. I do believe they will see their day again. Watch for a pullback down below $100 and/or a RSI pullback down near 40. Whichever comes first is where I would start legging into this stock. Yes it’s a long fall, but this stock’s RSI has never been below 70 so it needs to spend some time down there to work off this overbought state.
This is the “stock a fork in it” candidate of the week. You are witnessing a blow off top here in the making, but just like the stock above this will eventually see new highs. This is just a mid term topping pattern playing out. The RSI is at a ridiculous level of 95.29. Now I wouldn’t short this stock as I never short strength, but if you aren’t taking your profits you are just plain greedy.
August tradewithZEN’S trading results are in. We went 10 for 10 in closed trades. See all the past trades here.
Since inception of July 2013
- 99 winners with avg gain being 6.09%
- 23 losers with avg loss being 5.13%