The RSI Zone: Proton Power Systems (PPS)

Monday, 30th November 2015 09:05 - 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 Proton Power Systems (TIDM: PPS)

PPS recently hit RSI oversold, so let’s catch up with the recent news. The half yearly report showed some interesting developments, including:

-          Increase in manufacturing facilities

-          Order for a fuel cell system into a housing block in Switzerland

-          Finalisation of plans of a bus solution with an Asian bus maker

The company is well funded with the continual help of Roundstone, which holds a majority holding of over 90% of the company. I see this as a good thing since it vastly reduces the chance of a hostile takeover by people who try to build up a 10%+ holding in the company. PPS has also upgraded its website recently and it gets the thumbs up from me since it is much more informative than their previous effort and there is also available a few prices for some of their products to get an idea of what these things cost to buy. So take a look!

http://www.proton-motor.com/

Incubation time: buyers entering now must be aware that stages 3-4 of an uptrend are unlikely to appear for 10+ 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.