Sonoran Desert Copper Posts Bullish RSI & CCI Sonoran Desert Copper Corp forms bullish "Commodity Channel Index" chart pattern
Mar 15, 2024
Trading Central has detected a "Commodity Channel Index" chart pattern formed on Sonoran Desert Copper Corp (SDCU:TSXV). This bullish signal indicates that the stock price may rise from the close of $0.09.
Tells Me: The price is relatively far from its 20-bar average price.
The Commodity Channel Index (CCI) measures the deviation of the price from its average value (comparing to a chosen moving average, typically 20 bars). The oscillator is normalized by dividing by the typical deviation, so we get an oscillator fluctuating roughly between +100 and -100. Many traders use these as overbought(+100)/oversold(-100) markers and watch for signs of reversal, but original use was to consider long positions when CCI is above +100 (bullish event), and short when below -100 (bearish event). When the price crosses back in between +100 and -100, another event is triggered to indicate an end to the prior bullish or bearish situation and a possible opportunity to close out such a position.
This bullish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.
Sonoran Desert Copper Corp forms bullish "Relative Strength Index" chart pattern
Mar 15, 2024
Trading Central has detected a "Relative Strength Index (RSI)" chart pattern formed on Sonoran Desert Copper Corp (SDCU:TSXV). This bullish signal indicates that the stock price may rise from the close of $0.09.
Tells Me: For bullish events, we may be seeing higher prices as the price seems to be recovering from oversold as losses on down periods (over the last 14 bars) are no longer overwhelming gains on up periods to the same extent. The opposite is true for bearish events, which signal lower prices ahead as the price seems to be recovering from overbought because up days are no longer overwhelming down days to quite the same extent.
RSI measures the strength of an issue compared to its recent history of price change by comparing "up" periods to "down" periods. It's based on the premise that overbought conditions tend to occur after the market has advanced for a disproportionate number of periods. The RSI fluctuates between 0 and 100 with 70 and 30 often used to indicate overbought and oversold levels, and 50 the dividing line indicating the direction of the trend. The RSI should not be confused with relative strength which compares a financial instrument to a market index.
This bullish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.