Figure 1. ISM Price Chart
Right now ISM is standing at one of its fibonacci support line at 0.0625. Nearest resistance line is at 0.0690. It is somewhat consolidating for it is now at the oversold area (See figure 2 below). Positive side of ISM is that it has a strong upward trend strength right now at 41.45. But also be very careful because its usually at this level where the price start to either go consolidate or go down.
Figure 2. Technical Indicators
Momentum is bullish when its value is above zero and bearish when below zero. Momentum closes with a bearish momentum of about -0.0025.
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 61.82. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 1 periods ago.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 61.11. This is not an overbought or oversold reading. Sell signal was just been triggered.
Base on the technical indicators all signalling a sell signal, I would definitely advise to protect your profits and sell ISM until a clear upward movement of price is visible.
why put your fibonacci top at the .625 and not .675 high?
ReplyDeleteSorry for the late reply here.
ReplyDeleteMy fibonacci support and resistance lines is not merely based on the fibonacci retracement alone. It is on combination with the fibonacci price projection. Combining this those will increase the odds of finding the exact location of the support and resistance lines. With this we can conclude that price has the probability of finding its next resistance line at around 0.0700. Provided the support line at 0.0625 is not broken and ISM was able to consolidate from being overbought.
Base on its closing last Friday, ISM was able to hit 0.0725 which is where our resistance line is located. Since a big bullish candlestick was form here, I'm expecting ISM now to continue to go up. It is also no longer at the overbought area.
sir ,
ReplyDeletethanks for the ISM chart. I visit this website all the time. What would be the target price for ISM? Thank you very much!