ERIE trade ideas
ERIELooks like a lot more downside is possible. Play it for a dead cat short-term if you're bullish.
ERIE short play on trendline breakERIE broke its recent upward trendline today, creating a short trade possibility with a small risk and high reward.
Factors leading to the decision:
Major trend is down
Minor uptrend looks like it was a relief rally, and price broke below it in the past 3 days
20-ma was recently lost, pulling moving average traders off the sidelines
The recent high fractal pattern is also at the 20-ma and offers a perfect technical spot for a tight stop
As always, use a tight-stop and if it rips down, let it run and trail stops behind.
ERIE being eerie! RSI analysisERIE's chart seems to work on overbought levels. The chart mark the levels where the RSI is overbought, and when it goes back to under 70. Using these as signals have worked well in the past; of course past performance is no guarantee of future results; and Implied Volatility is over 400% higher.
OBV has stayed in its upper channel ( Bull )
200sma is working as strong resistance, marked in-chart. ( Bear )
Keeping on a watchlist.
ERIE is a non-stop Bull. againI haven't seen a chart like this.
Overbought conditions tend to go to extremely high levels. ( RSI<30 oversold & RSI>70 overbought).
Technical Analysis:
I see a positive divergence between the bull rally from February (marked in the chart) and this June bull rally, is that the OBV is 50% higher!
RSI(10) @89, last rally ended on RSI(10) @94.
Check out the chart for more information.
Bullish Trend for ERIE Despite Bearish Equity Sentiment
1. Market is supported by long term trend line on Weekly Chart.
2. RSI rebounded from support zone, which corresponds to previous rebound from trend line support.
3. Break out of consolidation phase, now trending higher.
4. Sharp price rejection at 120.00 level, which is a 50% Fibonacci retracement level
Conclusion:
Bullish trend expected to continue to projected price level at 150.00.
Alternatively look to RSI (100) resistance at 60.0 as a profit taking guide.
ERIE approaching $100ERIE appeared on our breakout list today. It is not a stock I would normally consider as it is not an S&P500 company. Volume is low, which makes liquidity low, and difficult to trade in the UK. However, I like the look of the chart so thought it worth analysing.
ERIE trended well until consolidating from 2011-2014. There were a couple of fake breakouts in 2013 but they were unlikely to catch out any experienced trader. In November this year price finally broke out and retested the consolidation high and has since formed three consecutive bull flags.
With volume exceptionally low and $100 figure fast approaching I won't be trading this one. But a good example of a great set-up.
