Expect a strong start but watchout for a big red flag.
CRON blasted off afterhours. SPY Futures are up .5% and we had a good news release Friday. All signs point to gap up. However you should be setting an alert for 88 on the RSI scale. The RSI is the relative strength index. Under 30 and the stock is said to be oversold and over 70 over bought. Here is your red flag, the last 9x this stock has hit 88 on the RSI it has dropped 20%+ December 29th it dropped 21% and Novemeber 27th it dropped 33%. These have not been trend changers however but if you can time it you can get out before the crash and buy the dip. The RSI is the purple line chart below. The red line being 88. The blue arrows were the dips. One thing to also note is APH's earnings good or bad have also caused 20%+ dips. Too many red flags for me. Ill be looking to short this stock for a quick play and rebuy the dip later this week.
I know I am going to take heat for this but I wouldnt be buying APH until after I see that RSI get well under 70.
I know I am going to take heat for this but I wouldnt be buying APH until after I see that RSI get well under 70.
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