Home » Candlestick Charts » Daily 2-Minute Chart Study #586: Hind Sight Red Flags



There is always inherent risk in the market place, more so when you deal with certain sectors like the Biotech space where there is high overnight risk/reward potential based on unseen forces coming from say FDA decisions, or clinical trial results.

In this particular example the stock did meet the minimum requirements for the Ultimate Muathe Breakout and as such was a buy when it moved above a recent monthly closing high at $18.85.

With the 80%+ gap down we now see (on hindsight for sure) that there were many red flags potential situations including: Uniformity resistance, single line resistance, negative divergence, All-Time indicator lows, RSI 69.1 rejection, RSI 50 crossing, RSI 30.9 crack, and much more on pretty much all the time frames of the monthly, weekly, daily and hourly.

“The Ultimate Muathe Breakout [ UMBO ]”

“Single RSI Long-Term Lines”

“RSI 30.9 Deceleration”

“RSI 50 Crossing”

“RSI Divergence 2.0 & Uniformity”

Otonomy Inc
NASDAQ: OTIC
$OTIC

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One thought on “Daily 2-Minute Chart Study #586: Hind Sight Red Flags

  1. Rol M says:

    80% wow, Snap was better ;-]

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