Oversold to All-Time Highs
Last week, we pointed out that the Relative Strength Index (RSI) was oversold—a level that historically signals a strong buying opportunity. At the same time, prices were testing a key moving average support level, which increased the probability that buyers would step in.
The market’s reaction didn’t disappoint. We saw a powerful rally ignite off those technical levels, propelling stocks to fresh all-time highs once again.
Will the Rally Continue?
That’s the question traders are asking now. The explosive rally has brought momentum back into the market, but extended rallies often face resistance or short-term consolidation.
Key factors to watch:
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RSI levels: Is the market approaching overbought territory?
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Support and resistance zones: Can the rally hold above the breakout point?
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Volume trends: Is buying pressure confirming the move, or are we seeing signs of exhaustion?
The Bottom Line
While technical signals gave us an excellent buying setup last week, the real test comes now: can the rally sustain itself, or are we due for a pullback?
As always, staying systematic and disciplined—rather than chasing the move—is the key to consistent success.
👉 Book a 15-minute appointment with an FFR strategist to discuss market opportunities.