$VRM Is Due for at Least a Technical Relief Bounce

$VRM is in a large falling wedge, but it lacks the long-term daily bullish divergence I like to see at the very bottom (see the orange line on the RSI). However, it does have short-term bullish divergence on the RSI (the green line on the RSI) and so far trend line support. The conservative view here then points to at least a relief rally that would target the top of the wedge. Hopefully the structure of the move from here to there will give us clues as to whether it will need to make another trip to the bottom or not, but for now at least, probability favors a bullish bias, in my opinion.


[UPDATE]: This relief rally has failed to materialize. I will file this under “Unsuccessful Calls.” If it does rally soon, I seriously doubt it will be able to get to that target range or anywhere near it at this point. I will need to monitor the price action from here prior to making a new call.


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