The RSI Zone: Empyrean Energy (EME)

Tuesday, 1st December 2015 09:12 - by Moosh

So now we’ve established that the RSI (relative strength index) oversold position could be considered as a possible entry position, we enter the RSI zone where companies which have recently dipped to a daily RSI oversold position will be highlighted.

Since these will still be in stage 1 of a trend I will also mention an incubation time (as it stands currently) which one must hold for before stages 3-4 are likely to appear, then it’s your choice whether you are willing to buy and hold for that length of time or not.....and even if you don’t, there may be other investors/traders sitting on the sidelines waiting for the RSI oversold position to hit before they take up residence. After all, the easiest money to make if you are a trader is on the RSI oversold-overbought swing, which should unfold over the four stages of an uptrend.

Today’s candidate is Empyrean Energy (TIDM: EME)

EME recently hit RSI oversold, so let’s catch up with the recent news.

-          The company is funded by a loan against its Sugarloaf asset

-          Production stands at over 1000 barrels of oil equivalent per day

-          Partial hedging in placing for oil

-          Interim results due, usually late December

Incubation time: buyers entering now must be aware that stages 3-4 of an uptrend are unlikely to appear for 8+ weeks, currently. If you are unwilling to buy and hold for at least this length of time then this is not for you.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.