Heightened Security
When you see a convergence of indicators
occurring in one setup, it tends to catch your eye. Mind you, one is enough for
a good trade, but, let’s face it, the more the merrier. Trading stocks is as
much about keeping what you’ve got as it is about making money.
RSA Security (RSAS) is in a trading range near a
six-month high, after running up off its 50-day moving average on increasing
volume. The stock is trading at a .618% retracement of the 7/13/00 high to the
10/4/00 low (not pictured), which almost precisely coincides with the prior
two-month-high peak made on October 18.
After bouncing off this level five times in the last
week, RSAS is sitting at the bottom of the range today. Traders might be looking
for a bounce from this level, even to the high of the range.
See you tomorrow,
Eddie