Wow, what a day for RDW! This is a stock I’ve been writing about recently, and the 6-day cycle really helped us time into the trade perfectly. If you missed my early heads-up from a few days ago, today would have been a great example of how relative strength can guide you into a trade. I want to walk through the setup and show why this move unfolded so cleanly.
Above is a 5-minute chart of RDW, with the SPY in the lower pane for comparison. Around 10:20 ET, the SPY made a lower low, but RDW held a much higher low. That divergence was a clear clue that buyers were in control. Another hint was the elevated volume compared to the previous day, the kind of confirmation that signals conviction from the buying side.
Once the stock broke above $8.35, it continued moving higher into the close. Watching this unfold in real time, it was just a wonderful setup: clear price structure, strong relative strength, and supportive volume.
On the right is a daily chart of RDW, and you can see this is the largest green day we’ve seen in a while. The top of the channel comes in around $9.50, so I think there’s more upside potential still left in the stock before we see a pullback.
This trade is a great example of how combining the 6-day cycle with relative strength analysis can give you an edge, letting you spot entries well before a big move occurs. The signals were there, you just had to know what to look for.
For a deeper dive on this trade and how the 6-day cycle helped me get in ahead of this move, click here. It’s always exciting to see a plan come together, and RDW is a textbook example of timing, strength, and conviction lining up perfectly.
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