end of day 25 august - just TA here, probly not relevant to LT...

end of day 25 august - just TA here, probly not relevant to LT holders

This charts showing a RSI swing failure setup...

Bullish Swing Failure in RSI occurs when:

RSI below 30 --> heads above 30 --> makes a high then turns back down towards 30 --> stops, making a higher low before 30 --> turns back up and goes higher than the last high.

[The failure basically indicates a change in trend in the RSI]

The RSI swing failure has proven a very powerful signal lately in a number of stocks I've been following.

Also on the chart you will see, that for the RSI to put in a Swing Failure it will have to break out of the mini-fork within the broader downtrend fork... These forks are given extra validity by the fact that the trigger line of the broader fork is in fact the downtrend line.

A few things lining up here IMO -

1. We have what appears low volume testing, it needs to be confirmed by higher low upbar tomorrow;
2. If the low volume test is confirmed as in (1) above, then the SP will have to break through the minifork;
3. Also this SP action will probably cause the RSI to confirm a bullish swing failure by getting above the red dashed line. If not tomorrow then at latest monday if monday isn't a down day (red line on RSI = 44. RSI 45+ would confirm the signal)

If all of (1) - (3) pan out around the same time would be a solid buy signal IMO. First stop before hesitation would 22-23c, upper tyne broader fork, which conveniently would be testing right up toward the top of that ugly downbar. If not then potentially down to middle tyne of minifork (15.5c - 16c).