double top, and rsi divergence short strategy.this is my idea, rsi give me a big divergence when the price goes up, whit a big run.
SGU trade ideas
SGUDouble bottom formed
Top of trendline resistance seems evident to tap
Dividend date is fairly soon as well
Potential Reverse Head & Shoulders PatternPotential left shoulder lasted almost 2 years, potential head took about 6 months to complete, potential right shoulder has only put a few months of consolidation in so far. It looks like the company has been buying back stock pretty aggressively over the past nearly 2 years (I can't see any further than that since I don't subscribe to TradingView yet) as total common shares outstanding have decreased by about 9 million during that time. As you can see in the market capitalization chart, the potential right shoulder is actually cheaper than the potential left shoulder as price per share is about the same but the market cap is lower. Price does not need to consolidate for 2 years but it could (and could consolidate even longer). A monthly close above $10 would be a good sign the rise is underway but of course, as always, it could prove to be a false breakout. The stock also pays a nice dividend of over 5% currently (which of course could always change but it has paid out consistently over the past few years and has been increasing over time, although it hasn't increased since early 2019). This provides nice potential income while waiting or could wait for the potential breakout to get in. Stop loss is a monthly close below the 50 month EMA, which is currently just over $9. **see disclaimer below** *also see a link to an idea by ChristopherCarrollSmith that got me thinking about the concept of dilution - I wouldn't have included the thoughts about the market cap of this stock without reading that idea recently*
**These are just my personal notes about this stock and analysis of an intermediate-term chart pattern, which could very well prove to be a false pattern. The monthly close stop loss is riskier because price could absolutely fall apart in a month's time but I don't want to get stopped out prematurely as you can see price has briefly dipped below the 50 month EMA from time to time in the potential left shoulder and I don't mind taking on more risk because I manage a diversified portfolio, so whatever happens with this individual stock will not "break the bank" for me. Therefore, if you decide to follow any of this, trade at your own risk.**
