Swing Trade RHT

The market is still in a little bit of limbo, but it's turned enough that I'm considering going long.

In terms of SPY, the 10 SMA is above the 30 EMA and the Williams %R is at -74. We're looking for below 80, so we're getting there.



The VIX on the other hand is still in the middle. The RSI jumped to 50 from thirty which is a good sign, but it hasn't approached the 70 that we need to say the market is completely oversold. The VIX is still right around the 10 day moving average. It's really in the middle right now.



My potential stock is RHT (Red hat). There is a support line around $22.08 and a Fibonacci line around $21.92. Resistance is around $23.25 The long candles have all been on large volume, and the previous four day decline has been on light volume. It rallied hard off the lows at the end of today's session.

There is no upcoming announcements that I can find, so I am clear on that front. It looks like this is either the first pullback of an uptrend or the beginning of some sideways action.

My plan is to buy tomorrow if it trades above $22.78 and my initial stop will be at $21.80. It's below Fibonacci resistance. Let's see how it goes.