Long Position on AVEO

26 sept. 2016

When choosing the right penny stock, I analyze two indicators: the MACD and the RSI. In this case, the MACD has already crossed over and the RSI is about to cross the 50 mark, or what I like to refer to as my "trigger line". If you look at how this stock behaved when both indicators were displaying these patterns, it appears that the stock has increased not long after. In this case, I would buy and hold until the MACD crosses back over and the RSI enters the "below 50" mark again. If the price decreases by 10% to 0.81 I would cut my losses.