RCR - RCR Tomlinson

[Skol]

I 've had these for a while and not so long ago bought some more at .76.
I think it might be catch-up, investors identifying oversold shares. I also hold BOL which is doing the same thing.

RCR have lots of work on for the next year or so.

[Skol]

RCR up again, 5% this morning, checking on the chart unusually high volume for the last few days.

Make that 10%.

Now up 15% on near record volume.

[COLIN]

RCR up again, 5% this morning, checking on the chart unusually high volume for the last few days.

Make that 10%.

Make that 15% now.
Over 70% in a month - not too sure that I can take the pace! Must be a speeding ticket coming up.

[Skol]

Make that 15% now.
Over 70% in a month - not too sure that I can take the pace! Must be a speeding ticket coming up.

Up 20% today now, but can it last? Maybe record volume today.

RCR closed on its high yesterday so technically, looking good for more gains today.
Nothing in the news.

[COLIN]

Up 20% today now, but can it last? Maybe record volume today.

RCR closed on its high yesterday so technically, looking good for more gains today.
Nothing in the news.

100% gain for me so far, but I'm starting to get nervous, but P/E still looks relatively modest, also P/NTA.
I wonder how Phaedrus would view the current position.

[macduffy]

I'm no Phaedrus but I certainly wouldn't be selling with RCR in a strong uptrend on good volume.

I might think about a trailing stop-loss to protect my profits though.

[contrarianinvestor]

Strange how people get optimistic when prices go higher. The exceptional investment opportunity is now gone. The time to be optimitic was when the shares we obviously undervalued as in my February post.

[Phaedrus]

Uptrends this steep are unsustainable and RCR is due for a correction. Too many people have made a lot of money and will be looking to book some of their profits. There is strong evidence that this process has already begun. Yesterday, RCR rose 16 cents during the day, but profit-taking pressure drove it down and had halved that gain by the Close. This is shown by the long upper shadow on yesterday's candlestick. You might like to look back at what happened last time RCR had run up very fast and such a candlestick was formed (see inset chart). Active traders would have exited yesterday afternoon when it became obvious what was happening. (Who do you think was doing all that selling?) We know who was doing the buying. In polite circles they are called retail investors.

At times like this this you really have to sort yourself out and and decide what you are, how active a trader you want to be and what trend you want to monitor and trade.

The chart shows 4 indicators suitable for use by conservative, less active participants. You can easily see that none of these are anywhere near being triggered and even a fairly substantial correction would not see you flicked out of this trade.

Still undecided as to what to do? At times like this, the time-honoured solution is to split your investment. Treat half as short term punt and retain the other half as a longer-term investment, selling only when the trend reverses.



The chart shows today's candlestick as at 1pm. Right now, RCR is looking very strong. It will be interesting to see if there is any sell-off later in the day.

[Skol]

Nice profits there, took them at $1.26, but will buy back though when it's more realistic.

[Phaedrus]

After RCR peaked at $1.27 early in the day, there was the same determined sell-off with the day ending exactly where it started. This forms a long-legged Doji candlestick and is an indication of a market separating from its trend. When preceded by a steep uptrend (an overbought environment) a Doji is Bearish.

Skol's exit is technically sound.