The RSI Zone: Update 14 December 2015

Monday, 14th December 2015 09:01 - 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, also referred to as dormancy period) 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 (sideliners) 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.

 At this point I would normally issue an RSI Zone update for previous RSI Zone contenders:

 Proton Power Systems (PPS)

Empyrean Energy (EME)

Asiamet Resources (ARS)

Software Radio Technology (SRT)

..however, since none of the above companies issued any positive updates in the last week, I will keep the updated incubation times/dormancy periods to myself until at least one of the companies above can give the market a positive update which shortens their incubation time/dormancy period, and if this happens, then the incubation times/dormancy periods for ALL the companies above will be provided.

 So I continue to wait keenly to see what surprises any of the above companies (positive surprises I hope!) have in store for us which may have the effect of dramatically shortening their dormancy periods to kick start a new uptrend from an oversold RSI position. That’s the task for them.

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.