The latest RSI trading signal shows that momentum has shifted firmly back in favor of the bulls. After the recent pullback, the Relative Strength Index closed back above its moving average — a strong sign that buyers were returning. The very next day, price broke the prior day’s high, confirming the RSI signal and pointing toward further upside.
Why the RSI Trading Signal Matters
Technical traders often rely on the RSI to measure momentum. When it moves above its moving average after a dip, it can act as a clear RSI trading signal that a trend reversal is underway. This was the case last week, setting the stage for a push toward two upside targets.
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The first target was hit last Friday with conviction.
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The second target is now in sight as bullish momentum builds.
Will a Correction Follow?
With the second target nearly reached, traders must now consider whether profit-taking could spark a short-term correction. To gauge this, it’s important to watch:
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RSI Behavior: Does it stay above the moving average?
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Volume: Higher prices on strong volume confirm buyers remain committed.
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Price Action: Failure to hold new highs may signal exhaustion.
Bottom Line
The RSI trading signal provided traders with an early clue that the recent pullback was losing steam. With one upside target already achieved and another within reach, the coming sessions will reveal whether bulls can extend the move — or if the market is due for a pause.
👉 Stay tuned for next week’s Market Minute, where we’ll track how this RSI setup develops.
📌 Educational only. Not investment advice. All trading involves risk, and past performance is not indicative of future results.