RSI indicator6 Sep 2020 12:02
Just a quick up date, and for those who have not followed this, I have found the Relative strength indicator to be a good barometer to time a buy or sell.
To recap: the last 3 highs have been thus: 3.8p-RSI 88.87....4.7p-RSI 76.40.....6.4p-RSI 81.25 (Anything approaching 80 or above 80 suggest the stock is overbought and therefore some selling will ensue until the RSI is falls to somewhere between 40-80 (an RSI of 40 or less on a stock in a upward trend would suggest further falls unlikely or small).
Today with the SP at 6.0p the RSI is at 73.44, so while certainly enough room for a rise more likely another day or two of stagnation or falls (imo) These RSI figures are based on the 1 day time frame.
But if you look at the 15 minute time frame then there is a lot more data to work from with much more intraday rise and fall within those time periods and as a result you gat a different RSI number. Then, at the close of play on Friday the SP was still 6.0p of course but the RSI was 43.09, suggesting we are very close to, or at, the bottom before more rises.
The spread on this stock does not lend itself to day trading imo, so I think you have to take a longer term view when deciding on what price you buy in at.
Eve as a stock now, stokes the emotional paranoia rather well as it can move very sharply, very quickly making the "wait and see" approach somewhat fraught.
Fwiw, and just my opinion you might get 5.5p if you wait a couple of days, but it just as easily could lurch up on Monday to 7.5p before taking a breath, ......you pays 'yer money...and all that.
However if you think this company has the ability to rise to 10-15p in the next few weeks/months which I think there is starting to be a decent argument for, then would you risk waiting in the hope it might fall another5%-10% before buying or just getting in now while you can?
Its not an easy game, this.......