Not buying the dip

2024年5月16日

RARE chart shows strong short term momentum in what could be a reversal of the existing downtrend. Althought price actions suggests a possible long, volume (oscillator) is weak suggesting a strong possibility upside could be capped. As such no trades will be considered here.

Now I should note that volume can sometimes be misleading and it is plausible that chart continues to make new highs without ever looking back. This is particularly true for tech stocks. However out of prudence we use volume as a trade filter and do not take the trade here.

2024年5月21日

註釋

The move has broken down and reversed to the downside