Regis Resources - Chart Discussion 23 August 2015, page-6

Hi Strugglin,

As a starter I'd suggest you read Stan Weinstein's 1988 book, Secrets for Profiting in Bull and Bear Markets.

It is, in my opinion, a classic and a must read for anybody wanting to get a start for improving their skills.

I was doing a scan of the 20 Resources stocks. And RRL came up as a stand-out.

I usually only post on the XJO forum, but thought I'd have a look here to see what was being said.

Anyway, here's a current chart for RRL:



It has one of the best Mansfield Relative Strength readings amongst the 20 Resources. (That's a starting point from Weinstein.)

It has recently moved back above the 200-Day MA. The 200-Day MA is a common dividing line between bull and bear markets. (From memory, this is the only stock in the 20 Resources which is above its 200-Day MA. So that is a recommendation in itself as to its current strength.)

The DPO is above Zero, so is the DMI Historgram.

So long as it can maintain its position above the 200-Day MA and DPO and DMI Histogram remain positive - then "buy the dips".

One way of doing that is to watch the Stochastic indicator. When it drops below 20 and then rises back above 20 - buy.

Use stops to avoid an unexpected fall - which is a possibility in this current volatile market.

No guarantees - but RRL has a fair bit going for it - in an otherwise very bearish market.

Redbacka