Using RSI – the series

One of the stocks that caught my attention this week was TXN (Texas Instruments) from an article on the iPad 3 tear down. It appears that investors liked the news this week as the stock has been drifting up the past few days, breaking above the $33 level today.

In watching the 5 minute chart, there were a few clear entry points for a trade that I have highlighted on the chart below:

There are times where keeping it simple is just fine, a more mechanical approach. Using RSI to guide you for overbought or oversold conditions is one way to keep it simple.

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