Technical Analysis of Financial Markets - Essay Example

I shall keep a target of $470 as it is the major resistance level for this. RSI - Relative Strength Index Model has the most effective results as in the past this method has yielded the best results in terms of identifying the trends and making profits. The other methods are not so effective to guide the investor for making the right trading strategy. Thus using the RSI model it would be advisable to go long on Q.CRB as it is close to its support level and has good potential for good returns.

Also its RSI is around 40 which is an indication that it is a good buy. One can look for decent returns around 20-30% gain in a time span of 3 months and shall keep a stop loss of $210, which is major support for Q.CRB. One shall also keep a filter of $200, as this is being suggested by the weekly charts the turning point for the stock. Thus to conclude, It is advisable to use the RSI model for any investment decision. Out of given commodities investing in Q.CRB is advisable, by buying at the current levels and keeping a time horizon of three months.

A return of 20-30% can be expected. References:htt