RAD Watch

Rite Aid Corp. (RAD), the pharmacy company, has moved into bull mode on the parabolic sar and Person's Proprietary Signal, and the macd is heading in that direction.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
RAD $1.15

The price action, however, is ambiguous, with Thursday's rise that triggered the phase shift being taken back on Friday. So it's a "trust me, have I ever lied to you?" signal.

It should also be noted that the stock has been in a downtrend since March 25, when the price hit a swing high of $1.77. Any bull signal is counter-trend. Since the peak, there has been one other switch to bull phase, on April 26, which lasted for seven trading days.

In April 2007 RAD hit a five-year high of $6.74, tested it once again a couple of months later, and then embarked on a display slide that hit a low 20¢ in February 2009.


Reversal Levels

• $1.48, +28.7%
• $1.38, +20.0%
• $1.22, +6.1%
• $1.15 <== You are here.




• $1.04, -9.6%

The $1.22 level is key, since it was the high from which the price retreated on both Thursday and Friday.

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Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.