TRUWORTHS - Short IDEA

- Price has rallied hard from the June swing low of R46.82 and looks to be running out of steam at this resistance level.

- A short trade is initiated to look for a reversion to the mean .

- RSi overbought
-MACD crossing over

Stop (daily close above) and take profit on the chart.

"A reversion to the mean trade is a trading strategy that assumes that over time the prices of any asset (stock, commodity, FX currency or cryptocurrency) in time will revert back to the mean or average price. In other words, reversion to the mean trading comes down to the old saying: “What goes up must come down.”

Mean reversion trading tries to capitalize on extreme changes in the price of a particular security, assuming that it will revert to its previous state. This theory has led to many investing strategies that involve the purchase or sale of stocks or other securities whose recent performances have differed greatly from their historical averages."