Greek vote? RSI negative reversals from last week signal new low
RSI negative reversals on both monthly and weekly charts: (point 1 close - point 2 close) subtracted from point 3 close = target; a close above point 1 close negates the signal. The tighter the signal the better; 2-5 bars between points 1 & 2 is optimal, and that's what we see here.
RSI 60 level is usually maximum resistance in a bear market - we haven't been above that level in quite some time and it's failing to even break 50 on the weekly since the decline began last year...
Monthly chart: (1.12224 - 1.11404) = 82 pips subtracted from 1.07303 = 1.06483 minimum target on close
Weekly chart: (1.14427 - 1.13450) = 97.7 pips subtracted from 1.04878 = 1.03901 minimum target on close
I went short last Thursday at 1.10954 with a stop @ 1.11712; I plan to take 1/3 off as soon as that puts me into a breakeven trade. A failure of the weekly RSI negative reversal signal would be a good long play if it goes that way...
RSI 60 level is usually maximum resistance in a bear market - we haven't been above that level in quite some time and it's failing to even break 50 on the weekly since the decline began last year...
Monthly chart: (1.12224 - 1.11404) = 82 pips subtracted from 1.07303 = 1.06483 minimum target on close
Weekly chart: (1.14427 - 1.13450) = 97.7 pips subtracted from 1.04878 = 1.03901 minimum target on close
I went short last Thursday at 1.10954 with a stop @ 1.11712; I plan to take 1/3 off as soon as that puts me into a breakeven trade. A failure of the weekly RSI negative reversal signal would be a good long play if it goes that way...