Friday, March 11, 2011

Chart Request-RDWR


5-day chart showing a rounding bottom, the recent "consolidation" is completely wrong, even though volume is right. A consolidation that is formed in a parallelogram should always consolidate against the prevailing trend, which means the trendlines of the consolidation should be slanted down. Anytime they are not (as we see here) , it's a warning sign.

weekly 3C chart shows accumulation into the rounding bottom as you'd expect to see, the recent action looks like distribution. 

30 min chart shows a negative divergence followed by some accumulation and a run up on conspicuous volume, it looks like an advertisement to retail traders to buy the stock-guess whose selling to them?

The 15 min chart confirms the above chart

On the 10 min chart, a bearish wedge takes shape, there's several days of extreme volatility marked by the small red arrows, typically seen near tops. 3C is in a negative divergence as well.

And the 5 min chart confirms the same.

I'm not sure if we are looking at a deep correction or a reversal, but I wouldn't be a buyer here, there just isn't an edge and there are too many questionable looking charts.

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