Posts Tagged ‘Oversold Security’
EUR/JPY–The EuroDollar vs. the Japanese Yen
The Euro seems to be doing not so well lately. It has lost ground to the British Pound, Australian Dollar, and this past month the little Yen of Japan, usually held down by its own government, has joined this world wide upside down rally, if you will. Check out the perfectly symmetric tunnel it is taking on its downwards trend. The RSI shows the trend clearly. It is approaching a rather significant support line that may cool off the strong downwards fall it has taken to the Yen lately. This resistance may indeed break this strong trend as it has broken the long downwards trend before it as shown in the left side of the Chart below. The Chart shows the strong support extending just below the current market price. Add to this the fact that the RSI is getting close to being oversold and is approaching, at this rate, oversold territory, and you have a picture of a possible trend reversal that is worth looking at for investment as close as a few days from now.
This is how the Chart looks:
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Just how short is Telecom?
This stock, believe it or not has been in a wild, upwards spiraling rocketlike movement for over a year. The exponential rise over this time indicates to me, from personal experience, only one thing. This stock has to come down, probably soon. I say soon because the RSI is for some time in the overbought territory(above 70) and the thick blue upwards RSI trend line has just recently been broken on the weekly chart shown. The daily chart is not shown here because this is intended to be an example of a longer-term investment. If one chooses to sell short here at 3.70, and has the patience and nerve NOT to close his position, the next support will be at approx. 2..8 and after at 2.5. Volumes have been unusually high, indicating a fight to break the 4 barrier, which was unsuccessful. But, the volumes, as I have indicated on the graph are in a downward flow, showing that, perhaps the time is coming for a good short.
This is the way its graph looks:
