Hitting a wall of short-term correction amidst overbought signals and overheated themes

Reviewing Prediction vs. Actual Result

An entry was attempted based on news of strong earnings driven by rising gold and PGM prices, along with an increasing trend in thematic news (rising, S-Class conversion rate of 56.2%). However, the actual result was a loss of -14.4%, hitting the stop-loss level and receiving a FAILED rating. At the time, even though the RSI(14) was in the overbought zone at 73.4 and trading volume was somewhat sluggish at 0.77 times the 20-day average, it is regrettable that focus was placed solely on upward momentum without sufficient caution regarding the possibility of a short-term correction near the resistance level ($12.81, the 20-day high) around $12.32 and the need to verify the support level ($8.55).

What to Watch in the Next Analysis

Going forward, we will more strictly evaluate not just the number of theme-related news articles or favorable reports, but also whether the RSI at the entry point exceeds 70 (indicating an overbought zone), and whether moving averages are unaligned without accompanying volume. In particular, we will avoid rash chase-buying near resistance levels, thoroughly apply conservative trading principles that prioritize risk management by going through a support-level verification process.