XNET - Good time to Short it

1 thg 11, 2017

XNET is a perfect stock for my strategy. Needs 2 days of patience before RSI drops down to 70.

The stock is over extended, up 150% over last 3 weeks. MACD Histogram has flattened out at the top, telling me it is about to turn over and head downward towards 0. If you wait til Histogram gets to 0, you will miss the first big drop on the stock. I use Histogram in lieu of line crossings to get ahead of the drop. I wait til the histogram drops 1 from prior day. This is my signal to enter the trade. This trade is not there yet.

RSI shows far over bought
Stoch RSI shows far over bought, confirming RSI.

3 indicators pointing to a drop. How far? Well, there is not real resistance til 4, but I'd be happy to set target for a drop to 7 or 7.5...and then re-assess it. The stock needs to pull back.

Looks like it may be 1-2 days before it drops. RSI and Stoch RSI are very high.
When RSI crosses 70, it will confirm the move downward.
Strategy - Don't buy the price, place a Short just below and let the stock come to your price. This eliminates the risk of a reversal. Price it just below RSI 70.