Archive for April 1st, 2010
Gamuda RSI
Above chart is a market price for Gamuda (5398) with RSI comparison. As a newbie, a friend did Long at RM2.80 due to his bullish expectation.
He should go Long while at RSI 30. Since he has jump into the market, he has to wait. Unfortunately, due lawsuits file by the Arabs, the price has fallen.
However, using RSI method, enable him to exit at a right time. Below are the decision he has to made to gain profit:
- Price touches MA line,
- RSI rises above the 70 level and falls back below it, and
- Double confirm it, when bearish divergence where the first peak is above 70.
