Hi V*,
I watch the RSI too. I find it a valuable tool in trying to find tops and bottoms. The one caution I would add to your last post is that it's quite hard until it starts to come down again, that the top is actually in. So for example, looking at the chart you posted, if you look at early February last year, the RSI crossed the oversold line when the GP was $1120, there had been a strong run already and it would have been easy to look at the RSI and feel like the top was in. But actually, the run continued and that run peaked at $1240 and from memory the RSI was around an astonishing 84. So if you sold as soon as the RSI became over bought, you missed a large part of the rally.
Turning to the RSI today, yes it's touching overbought, but there's no clear sign that it's turning. So my view is let your profits run for the moment.
Cheers,
Tim.
BDR Price at posting:
37.5¢ Sentiment: None Disclosure: Not Held
