Dow Jones Industrial Average shows daily bullish RSI divergence

In May 2012, I showed that daily RSI divergences can be a reason to remove positions but that only weekly RSI divergences are good enough for the entry criteria for RSI divergence trades. I followed this up in February 2013, showing how those ideas turned out.

SPDR Dow Jones Industrial Average (DIA)

A short position in DIA was opened on 14 August at $153.32. This now has a bullish divergence on its 14 day RSI.

Therefore I will take half of this position off at Friday’s close of $147.85 for a 3.6% profit and move the stop loss to break even. Given the bearish weekly RSI divergence of early August, I’m still hoping for more downside from that eventually, so I’ll keep half of the position.