Tag: Relative Strength Index (RSI)

Is It Time To Buy Yelp, Inc. (NYSE:YELP)?

Posted on by The INO.com Team

Yelp (NYSE:YELP) is the go-to app for reviews on restaurants, shopping, local services and the like.

Earlier this year in March, Yelp was trading over $100 a share and looked on its way to the moon. However, just the reverse happened and Yelp lost half its value by early June. Since that time, the stock has recovered and traded as high as $80 in early July.

There are several reasons why I like this stock right now and they're all technical. I have no inside knowledge of what is going on inside Yelp, but I can say that the technicals are looking very positive for the stock. Today, the weekly Trade Triangle kicked in, indicating that the intermediate trend is now inline with the longer term uptrend.

1. All of the Trade Triangles are positive and displaying a +100 Chart Analysis Score.
2. There is a monthly Trade Triangle in place.
3. Pivot Point - measures the move to $85 a share.
4. Weekly Trade Triangle kicked in today at $76.49.
5. The RSI indicator is trending to the upside and is over 50.
6. The MACD indicator has recently turned up.

Just remember, there are no guarantees in trading, even with all the positive indicators. I'm looking for Yelp, Inc. (NYSE:YELP) to trade back to the $85 level in the near-term. As always, please remember to use money management and stops that work for your own trading strategy.

Good luck and every success trading in Yelp shares,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Time To Buy Tesla

Posted on by The INO.com Team

Yesterday, Tesla Motors Inc. (NASDAQ:TSLA) flashed a buy signal at $229.78. This put all three Trade Triangles in a positive trend.

The RSI indicator moved over the 50 level, which is also another strong confirmation. I view that action as the continuation of a strong upward trend for Tesla.

CHART LEGEND
1. Long-term positive trend line
2. All Trade Triangles are positive
3. Weekly buy Trade Triangle yesterday
4. The RSI indicator is now over 50
5. Upside target zone of $300

Technically, I can see Tesla Motors Inc. (NASDAQ:TSLA) moving to the $300 range. Look for near-term resistance around the $240 and $260 levels.

Every Success,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

Can The Relative Strength Index (RSI) Improve Your Trading?

Posted on by The INO.com Team

Today's video is on the Relative Strength Index (RSI). This widely-used momentum oscillator measures the strength and speed of a market's price movement by comparing the current price of the security against its past performance. Developed by J. Welles Wilder in the 1970s, the RSI can be used to identify overbought and oversold areas, support and resistance levels, and potential entry and exit signals.

The RSI indicator is shown on a scale of 0 to 100, with levels marked at 70 and 30, and a midline at 50. Wilder recommended a calculation based on a 14 day period, but this can be adjusted to change the sensitivity of the indicator.

Learn more here

Is This The Move In Gold You Don't Want To Miss?

Posted on by The INO.com Team

Last week, we looked at the cyclical nature of gold prices (FOREX:XAUUSDO) and the fact that gold was potentially at a low in time. Today's upturn in prices may be the beginning of an up move that will push gold back up to the $1,380 level.

At the moment, gold seems to have very few friends and sometimes that is the best time to buy this market. After hitting a high of just over $1,900 an ounce in September of 2011, gold has slowly drifted to the downside. I believe that the $1,200 level is an important area of support for this precious metal and should not be overlooked.

You have heard me say many times before on this blog that perception in the market is everything. Right now, the perception is that gold is not going to go anywhere in a hurry. While it may turn out to be true, there are certain clues out there indicating that gold could rally $150-$200 from the most recent lows. I'm sure many of you can recall when gold was trading close to $1900 an ounce, the talk of $2,000 $2,500 was all the rage amongst the traders. Right now with gold on the defensive and people calling for the gold market to go to $1,000 or even $800 an ounce, it's just the reverse situation. Sometimes it's psychologically difficult to turn your thinking around and that's why MarketClub's Trade Triangles do so well by giving you an unbiased opinion of the market. Continue reading "Is This The Move In Gold You Don't Want To Miss?" →

Is Natural Gas Going To Be The Stealth Bull Market Of 2014?

Posted on by The INO.com Team

Yesterday the United States Natural Gas ETF, trading under the symbol PACF:UNG, triggered a new weekly green continuation Trade Triangle at $25.44.

What is interesting about this market is the fact that it has broken above a two-year base, which I believe is very significant longer-term. With the recent pullback from the highs of $27.64, we actually stopped at the previous highs that were set in October 2012 and again in May 2013. Technically, this market looks very good and I am going to layout my case with simple numbers you can tie into the chart.

Looking at a chart of UNG, the most dominant features I see is the two-year base, (number 2) and a breakout over the two-year base (number 6). Continue reading "Is Natural Gas Going To Be The Stealth Bull Market Of 2014?" →