On 9 Nov sol broke down below its support line and also broke down from a symmetrical triangle (and H and S). I thought it was heading down to support at about 33600.It started rallying on 14 Nov at about 36600 from a very oversold position on the daily chart.Now it looks like a screaming buy(because it is back above support and above the symmetrical triangle) but is getting overbought.Some people here have said that oversold and overbought are irrelevant.I disagree but still find it difficult to decide what to do when the chart patterns show one thing but the overbought/oversold suggests the opposite.Any views?
That was the chart for 16 Nov. Now the daily sto and rsi are at the same levels they were on 17 Sept and 16 Oct when the share price had pullbacks.I'm not commenting on how long it will stay overbought,just that it is quite overbought.
Turns like a tanker!! 6-26 Sep 355 to 398 to 355 in that period. I remember clearly. Got in earlier at 339 then a couple days before reversing from 390 area I moved my stop loss up to 359. Took me out just before LDT. Was I mad! Thing is, oil drops 2-3$ tomorrow, SOL drops 10 bucks and vice versa. All I am saying, be careful of complacency.