I noted Alcoa as a long-term bearish-to-bulish reversal candidate.
Another concept I have been discussing of late is what to look for to distinguish a doomed bear market snapback rally off a temporary bottom versus a bonafide low and new bull market.
In essence, we want to see price act irrationally, in the sense of wanting to see it become and stay overbought for an extended period of time.
When we look at the top pane of the weekly chart for Alcoa, below, we can see the RSI remaining stubbornly overbought, above 70, during the recent breakout, increasingly the likelihood that the major aluminum producer has put in a meaningful bottom. Pullbacks and consolidations should now likely be stalked for long entries.
Which stocks are at the top of your watchlists this morning?
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Nice day to raise cash
sold $JNUG, then bot it back. spikage
GURE, SIFY, and MRGE look interesting.
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FAST Money ???
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Chess- Do you think this bad boy has room to run? Daily chart shows MACD cross, RSI under 70 and ripe for breakout. However, the weekly shows overbought as you metioned
Alec,
More so the type of stock to stalk on pauses/pullbacks.
Thanks Chess. Looks to be a long term, low volatile kind of play.
IRBT no ceiling