I came to a beautiful discovery today. on the weekly the RSI has been oversold three times. In 2014, 2015 and yes you guessed it the end of 2018. there were 15 weeks between the 2014 and 2015 oversold levels (you see.... at the end of one year and the beginning of an other one). The first one barely touched and the second one went further in the oversold level. in this period the price first rised and then dropped by 30%. Fast forward a few years and we see something similar playing out. A few weeks ago the RSI just touched oversold level (late 2018). and started a little rally from there. Just like it did in 2014 -15 Does this mean that we can conclude that over the next 8 weeks (15 - 7 weeks since oversold) we will see around a thirty procent drop, to then bottom out and have a slow, slow, slow rally resulting in the next bull cycle.
Or is this the start of the end?
Time wil tell!
Or is this the start of the end?
Time wil tell!