How to Sell at the Right Time
by Chris Rowe 07/30/09
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'Goodbye, Moto'
Below is a one-year chart of Motorola (MOT), before it became the $6 stock that it is today.
Again, here you can see that the RSI was in overbought territory, and then reversed back down below 70.
You can also see the negative divergence from August to September, and then again from mid-September to October.
If these signals weren't enough to spook you, the RSI confirmed its sell signal by crossing over the centerline (50), indicating that the bears were definitely in control. If you didn't listen to the RSI when the stock was trading up above $25, you should definitely have gotten out of the stock when the support level was broken, and the stock moved to $24.
You might have been upset that you missed selling at $25, but it would have been way less painful to lose a point then to wait for the stock to start skidding into the single digits.
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