REDF analysis

Posted by downtowntrader | 1/11/2006 09:19:00 AM | 0 comments »

I think REDF may be an attractive buy around here. I think there are a few early signals on the chart pointing to a move higher.

Daily: This is the chart giving me the most signals. REDF has been holding the channel depicted below by solid blue lines. It is near the lower trendline, but sitting above the SMA's. They have been consolidating the run to 22 so they have worked off the overbought condition and actually were recently oversold.I also like to look for CCI levels near -100 as an early signal of a rebound, and REDF never gets there, but bounces near a horizontal trendline (shown below). They usually bounce once, and then a second time. Also, Slow Stoch crosses from below 20 to above have been pretty reliable. So, I would look for maybe one more weak push down, and then maybe the rebound I'm looking for.

Weekly also shows a nice channel, although MACD looks a little overbought.

REDF has pretty good IBD ratings and they buy as it approaches the 10 week line.