Wednesday, September 16, 2009

RF - It's a BUY

RF - BUY


We got a lot of BUY signals from RF today, or at least BUY signals that are about to be confirmed. First of all RF has had 3 consecutive up gaps, with RF closing above its critical resistance point above $6.00, therefore getting out of its sideways trading channel. Volume has increased in these last sessions, which is required to continue to see RF share price continue its march up. To confirm this BUY signal, RF needs to close above $6.00 tomorrow and this would mean that the $6.00 resistance level has turned into a support level. The stochastic also gave us a BUY signal today crossing upwards the signal line.The MACD is about to cross its signal line also, as well as the 50 day MA crossing above its 200 day MA. Overall RF looks very bullish, with BUY signals to be confirmed, for the most part starting tomorrow.
Posted by Yoel at 5:45 PM

14 comments:

  1. DBSeptember 16, 2009 at 9:57 PM

    Thanks Yoel. I observed the Regional banks sector in general is doing well since the last couple of sessions..

    ReplyDelete
  2. traderSeptember 18, 2009 at 10:13 AM

    it went down .68$ after you said its a buy....

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  3. YoelSeptember 18, 2009 at 12:44 PM

    RF broke out of its channel going over $6.00, going as high as $6.81 2 days ago. Today RF has pulledback to its past resistance level of $6.00, which if it still manages to close above this level will confirm that $6.00 resistance level, is now our new support level. You will often see stocks that break through resistance level, first pullback to these levels again before moving higher.
    As long as RF holds above $6.00, RF is a BUY, and you can expect to see it go higher then. The BUY signal was initiated the moment it went over $6.00. We now have a little resistance at around $6.40.

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  4. YoelSeptember 18, 2009 at 12:46 PM

    Unfortunately I cannot track the move of every stock on a day-to-day basis, as things may change quickly. If you ever take a position based on one of my suggestions, feel free to ask me about the current condition in the days following my predictions. I will try to be clearer next time.

    ReplyDelete
  5. traderSeptember 18, 2009 at 4:19 PM

    Bought @ 6.68 ..can i hlod it ?...also waht is your take on DRYS and MGM...when is the next entry point for MGM..

    Thanks

    ReplyDelete
  6. YoelSeptember 18, 2009 at 5:14 PM

    If you bought at $6.68, and you are still long I'm guessing you didn't have a stop loss order set. Right now RF, has support at $6.00 and resistance at $6.40-$6.45. The problem with cheap priced stocks is that you may have big price swings, meaning that if like myself you are only willing to lose up to -7.00% on one position, you would have to be a trader who can accept more risk and therefore more potential losses. No matter what predictions I make, whether they turn out to be right or wrong I immediately set a stop loss order to protect myself. I suggest that you hold RF for now, if it breaks down below $6.00, SELL immediately and get out before you fall into a bigger loss, so have a stop loss order set. If RF goes over $6.40-$6.45, you can expect RF to move higher and very likely going over your purchased price.

    MGM, right now is a WAIT until it closes over $14.00, it would be a BUY. (to get a confirmation it would be preferable to see MGM stay above this level for two straight days). For the moment we have support around $12.50 and resistance around $14.00. So a break below $12.50 is another SELL signal, and a break above $14.00 is a BUY signal. Remember that we want to see the price close at these levels. As you saw with MGM it did go over $14.00 but did not manage to close above it.

    DRYS is currently a SELL, it topped at $7.75-$8.00, and we got a dark cloud formation confirmation today, indicating the start of a pullback. However it may have strong support at $7.00, and if you see it bounce back up this level and remain above for 2 days, this would be a BUY signal. It would be preferable to see DRYS close eventually over $7.75-$8.00, because even if it bounces back up from $7.00, it may trade in a range ($7.00-$8.00) for a while, and it would be best to wait for a break either direction, to get a BUY or SELL signal.

    ReplyDelete
  7. ParthuSeptember 19, 2009 at 11:29 PM

    Nice work so far. Keep up the updates. What's your take on Trinity (TRN)? I was confident about it until Friday when Cramer said it's a buy...I am scared now lol!!

    ReplyDelete
  8. YoelSeptember 20, 2009 at 1:16 AM

    TRN had a big run up since it broke its trading channel between $15.00-$16.25. When TRN crossed $16.25, this was your BUY signal, and HOLD since then. Right now TRN looks like it's starting to settle down and going through some resistance at around $19.00. This may just be a pause to the uptrend, or a sign that it may start trending down. Nonetheless, if you currently have no position with TRN, I would wait to see which way it goes next, a break up over $19.00 (BUY or continued HOLD), or a break down below $18.50-$18.00 (SELL). If you are already long TRN, I would HOLD on, until the next signal.

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  9. traderSeptember 21, 2009 at 2:45 PM

    any inputs regarding WEN and F ?...also RF is looking good..can we hold it ?

    ReplyDelete
  10. YoelSeptember 21, 2009 at 5:20 PM

    WEN is a WAIT for now. It has strong support at $5.00, and strong resistance at $5.20. A break over $5.20 is a BUY as long as it manages to remain at these levels (preferably close above $5.20 for two consecutive days).

    F is in a strong down trend, and it's currently a SELL. It may settle down soon and create some support, but it's too early to call it now. For the moment you should stay out of F.

    RF is looking good,as long as it holds up over $6.00, it's a HOLD.

    ReplyDelete
  11. traderSeptember 21, 2009 at 7:13 PM

    Thanks Yoel.....Do you still think AIG is a BUY @49

    ReplyDelete
  12. YoelSeptember 21, 2009 at 10:23 PM

    If I'm giving AIG a price target of $72.00, AIG is a buy at $49.00, as long as it remains over $40.00-$42.00.

    ReplyDelete
  13. traderSeptember 24, 2009 at 12:31 PM

    what is your current stand on RF ...

    ReplyDelete
  14. YoelSeptember 24, 2009 at 4:44 PM

    RF is currently a WAIT. If RF closes below $6.00, it's a SELL and you could see it pullback as low as $5.25 before finding support. If it closes above $7.00, it's a BUY.Until then you have to WAIT.

    ReplyDelete

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