Some technical analysis on $RXRX
I’m trying to learn technical analysis. Please forgive any mistakes.
(haven’t been able to sync my port ever since my Fidelity dropped from AH for no reason. I own 800 shares)
Primary trend: this is not going up YET. Prior to fall 2024 the stock kept making lower lows, see the red line in the 1-year chart. This is clearly a bearish signal, until fall 2024.
Now let’s use multiple time frames and it will tell a different story: in the 3-month time frame, the stock has been making higher lows, see the green line in the 3-month chart. This suggests that the stock is coming off a base, and it may be turning bullish.
On the momentum index, during the accumulation/consolidation phase, RSI never really hit oversold (never below 30), this is a bullish signal. Means buyers kept showing up. This is confirming our new uptrend, it’s what we like to see.
What is an important level: I believe in the Fibonacci ratio, it is naturally occurring everywhere in the physical world, in the universe, in our body, and of course in finance as well. Because a large part of finance is human emotions, and we humans are part of the physical wo. To me it is no coincidence that the December high of 9.55 is almost exactly 0.618 of the July 2023 high of 15.5. So I think 9.55 is an important level, if we can hit it again even if very briefly, could be very meaningful.
How does it do versus sector: ratio chart to $DJUSBT (Dow Jones U.S. Biotechnology Index), confirms the price trend.
Please let me know if I miss anything important. Thanks