/biz/ - Business & Finance

>>1801377

I like to use three main indicators to help my purchasing decisions if the fundamentals add up as well, RSI (relative strength indicator that generally tells me if a stock is oversold or overbought) MACD (to tell me where the trend is or potentially changing) and a simple trendline or two in the case of a breakdown or breakout

A MACD has two main components in my charts, the short term (blue line) and long term (orange line)

Note the MACD, I prefer to see the blue line looking to cross over the orange longer term line as an indicator that the short term trend is going to go up and as a signal to go long, or the opposite as a signal to sell/go short if the short term (blue line) is crossing down below the orange trend line as that will tell me that we are likely going lower.

In this simple papa johns analysis we see it is still in an uptrend and any weakness down to touch the green trend line is a nice spot to buy, blue has crossed over up on the macd and the RSI is still in the middle area so nooot quite overbought yet but still not exactly an attractive dip to get in at. It's likely it will remain slightly overbought in my eyes until the earnings rush is over, note I know absolutely nothing about retail pizza joints or any of papa johns financials, this is just my random musing from looking at a chart. I would look to start a position closer to the green trend line as that will be the dip (until the trend changes to a downtrend)