Rex has a change of character

• Posted by Greg Harmon
• on May 7th, 2015

They say that people can’t change. Once a type A always a type A, liars stay liars and winners keep winning. But it is not the same with stocks. They are like chameleons, changing how they look all the time. One such stock I am following is Rex Energy ($REXX). And it might just be going through a change of character right now.

The chart above shows the potential change. Rex has been moving lower for a year against trend support. There were a couple of consolidation zones, but they were short lived and the downtrend resumes. During the downtrend the RSI was falling and bearish, making lower highs, even in the consolidation zones. And the MACD was bearish, under the signal line and falling the entire time.

So what has changed? Everything. The consolidation has gone on over twice as long as in the past. The RSI has made a 2 higher highs and is rising. And the MACD has crossed up into a bullish signal.

This does not give a buy signal. Not yet at least. It would take a break over that resistance at 5.25 for that. But it does mean it is time to put this stock on watch for that next change of character.

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