Here’s Why You Should Watch The 5-Period RSI
The S&P 500 Index is
currently down 1.06 at 1141.56. Look at the 15-minite chart below.
The 5-period RSI is showing a positive divergence.
10:01:14 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
ADBE | buy stop at 53.76 | Trap Door |
53.61 | 54 | 53.68 |
TK |
According to Reuters, Adobe
Systems (ADBE) agreed to acquire Macromedia (MACR) for about $3.4
billion. On this news, ADBE gapped down at the open. Shortly before 10:00 AM,
the stock formed a small hammer on the 5-minute chart. Also, the 5-period RSI
was positively diverging. Immediately after the hammer, ADBE shaped an inside
bar. This could be a potential reversal situation. I placed a buy stop just
above the high of the inside bar.
10:03:57 (from TradersWire)
Follow up on ADBE
It has hit our target. Sell half and move stop to breakeven.
If you have questions, feel free to
mail them to me.