http://www.bloomberg.com/apps/news?pid=20601087&sid=aeyQ6hABlgVI&refer=home
Shares of Rinker Group were up sharply Friday following Cemex’s bid to buy the Australian company for $12.8 billion.
http://www.forbes.com/business/2006/10/27/cemex-rinker-update-markets-equity-cx_mk_1027markets12.html
RIN & CX charts are provided to accompany the story above...
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Brief review of RSI & MACD indicators...
The Relative Strenghth Index-RSI, is a technical momentum indicator that compares the magnitude of recent gains to recent loses.
Buy and sell signals can be generated by looking for positive and negative divergences between the RSI and the underlying stock.
The RSI is best used when combined with other stock-picking tools...
Moving Average Convergence Divergence - MACD, is a trend following momentum indicator that shows the relationship between two moving averages of prices.
1. Crossovers - As shown in the chart above, when the MACD falls below the signal line, it is a bearish signal, which indicates that it may be time to sell. Conversely, when the MACD rises above the signal line, the indicator gives a bullish signal, which suggests that the price of the asset is likely to experience upward momentum. Many traders wait for a confirmed cross above the signal line before entering into a position to avoid getting getting "faked out" or entering into a position too early.
2. Divergence - When the security price diverges from the MACD. It signals the end of the current trend.
3. Dramatic rise - When the MACD rises dramatically - that is, the shorter moving average pulls away from the longer-term moving average - it is a signal that the security is overbought and will soon return to normal levels. Also watch for a move above or below the zero line because this signals the position of the short-term average relative to the long-term average. When the MACD is above zero, the short-term average is above the long-term average, which signals upward momentum. The opposite is true when the MACD is below zero...
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