Alerts & Commentary
Alert – RMBS Technicals
RMBS
Though RMBS has moved back up slowly into ST resistance from both the 20-Day & 50-Day MA’s… everyone should take a look at the longer term trends on the Weekly and Monthly charts.
On the Weekly chart, over the past 12 weeks, RMBS is making a very bullish move higher, though slowly, after the clean Breakout (BO) during the week of NOV 30, 2009. It is now following the 20-Week MA very closely, which is moving higher. Also, the 50-Week MA is about to make Bullish Cross-over on the flattening 200-Week MA. These two factors could be predicting very good technical action to come as we near a clean BO price around $26.
Also, on the Monthly chart, RMBS has moved cleanly above both the 20-Month & 50-Month MA’s which are beginning to turn ever-so-slighty back to the upside. The Monthly chart also shows a clean BO price of ~$26.
If RMBS can move back above the ST resistance with a clean BO to the upside we could finally be off to the races from a technical perspective. Add these good signs to all of the good news and it could be a very good Spring for RMBS investors. Technicals confirming these news events can be a powerful catalyst for major adds from Institutions and a good time for Short Hedge Funds to exit their positions or face a significant squeeze.
Coach BD
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