Vert has asked me to have a look at RMI from my view. Normally I dont do this but here it is.
From a VSA point of view.
The initial up move was supported with increasing volume.
Spreads were wide so to was the gap up on very high volume.
The bar shows absorbsion of buyers as there is no sustained rise on this bar closing near the open.
At this point as a buyer you'd be looking closely at past price action coupled with the close by price action.
There are buyers trapped (For sometime) around the 80-85c mark. This is the supply.
Until this is absorbed by new buyers price will remain at this resistance.
The next bar has low volume and shows sellers searching for buyers.
The next bar (25) is an important bar as it tests on volume 77c and finishes off the lows at 81c
The next 2 bars appear to absorb the residual selling and find support at 77c.
Yesterdays bar shows confirmation that supply has been overcome in the near term.
Trading above 90c will show that supply has dried up and the stock can continue in its up move.
Looks good with a technical stop logically at 76c.
All charts 240 min
Educational purposes only.