Disconnected and headed down: The price action on TRCH last week
Last week, TRCH experienced a price action that many traders had been expecting. The weekly chart showed that TRCH was disconnected from its high moving average (HMA), while the relative strength index (RSI) was on a downward trend. This signaled a regular bearish divergence, where the price gave higher highs and lows, but the RSI gave lower highs and lows. In this blog post, we will explore the price action on TRCH last week.
Price action on TRCH was expected
Last week, investors in TRCH were likely expecting the price action that occurred. The weekly chart revealed that the price was disconnected from its Hull Moving Average (HMA). Additionally, the Relative Strength Index (RSI) was in a down trend.
When this type of bearish divergence is present, it is usually an indication that price will continue to head lower. This was indeed the case with TRCH last week as the higher highs and lows on the chart were not reflected in the lower highs and lows on the RSI.
Investors should be aware of this type of situation in order to properly analyze the stock they are investing in. It is important to recognize signs of Regular Bearish Divergence as they can provide clues as to when it may be time to exit or enter a position.
Price was too disconnected from the HMA
Last week, the price action on TRCH was expected to be bearish. This was evidenced by the fact that the weekly chart showed a disconnect between the price and the Hull Moving Average (HMA). The Relative Strength Index (RSI) was also on a downtrend.
When price gives higher highs and lower lows, but RSI gives lower highs and lower lows, this is a Regular Bearish Divergence. This divergence indicates that buyers are losing control of the market and sellers are taking charge. It is a sign of a weakening in the bullish momentum and is typically followed by a decline in the price.
In addition to the divergent signals, there were other bearish factors to take into account. There was increased selling volume, along with a lack of follow through on a previous upswing. These two factors further suggested that prices were likely to decline.
Given all of these factors, it wasn’t a surprise to see TRCH head down last week.
RSI was on a down trend
The price action on TRCH last week was exactly what many traders were expecting. On the weekly chart, the stock was showing signs of disconnection from the HMA, and the RSI was trending down. This combination of signs created a Regular Bearish Divergence, which signaled a potential price drop.
Regular Bearish Divergences occur when price gives you higher highs and lower lows, while the RSI is giving you lower highs and lower lows. This indicates that the underlying strength of the stock is weakening, and that a pullback is likely.
In the case of TRCH, this Regular Bearish Divergence was followed by a sharp decline in the price. After hitting a high near $14.00, the stock quickly reversed course and dropped over 8% in just a few days. While this may not seem like much, it serves as a reminder of how important technical analysis can be for making informed trading decisions.
Traders should always be aware of regular bearish divergences, as they can provide valuable insight into a stock’s future direction. By paying attention to price and RSI movements, traders can better time their entries and exits, ultimately leading to better long-term returns.
Price gave higher highs/lows
Last week’s price action on TRCH was as expected. On the weekly chart, the stock was not connected to its Hull Moving Average (HMA) and Relative Strength Index (RSI) had been in a downward trend for some time. This Regular Bearish Divergence signaled that the stock was headed lower.
Price gave us higher highs and lows, while the RSI gave us lower highs and lows. This is known as Regular Bearish Divergence and it is a classic technical indicator that shows bearish momentum. The Regular Bearish Divergence signals that the underlying trend is weakening and that the stock is heading in the opposite direction of what the trend had been before.
Investors should be aware of this type of bearish signal and pay attention to how the price action develops. If the trend continues downward, it could be a good time to exit positions or open short positions in anticipation of further losses.
RSI gave lower highs/lows
This is Regular Bearish Divergence