AI Trading bot Generates 4.58% Profit for FUBO Last Week: A Detailed Technical Analysis
Investors and traders have been monitoring FUBO last week as an AI trading robot leveraged its predictive capabilities to generate a 4.58% profit. The story gets interesting when we delve into the technical indicators behind this move. The 10-day Relative Strength Index (RSI) oscillator for FUBO emerged from an overbought territory on June 14, 2023, indicating a potential shift in trend for the stock.
The RSI, a popular momentum oscillator, measures the speed and change of price movements. When the RSI crosses over 70, it typically suggests that the stock is overbought and may be due for a price correction or at least some leveling off. On the other hand, when it dips below 30, the stock could be oversold, and an upturn might be around the corner.
On June 14, 2023, the 10-day RSI for FUBO moved out of the overbought territory, a potential sign of an imminent downward trend. This transition often serves as an alert for traders to consider selling the stock or buying put options as a precautionary measure.
Using AI-based analytics, Tickeron's A.I.dvisor observed 31 instances in which the RSI exited the overbought zone. Subsequently, the stock price decreased in 29 out of these 31 cases. This historical pattern suggests a high likelihood (about 90%) of the stock moving lower in the days following such a shift in the RSI.
Understanding the AI Trading Robot's Strategy
Despite the bearish prediction based on the RSI movement, the AI trading robot managed to generate a 4.58% profit for FUBO last week. How could this be?
The answer lies in understanding that these trading robots use a combination of multiple technical indicators, market sentiment analysis, and sophisticated algorithms, not solely relying on one indicator such as the RSI.
Moreover, trading robots can utilize short selling strategies, which profit from falling stock prices. In this case, the robot might have identified the RSI trend and used the expected downward price movement to execute successful short trades.
Another possibility is that the robot acted during the initial period when the stock was still in an upward trend before the RSI left the overbought territory, banking on the high returns during this phase. This would enable the bot to achieve a net gain even if the stock price fell subsequently.
While the 10-day RSI oscillator moving out of overbought territory signaled a potential downward trend for FUBO, the AI trading robot capitalized on this shift, generating a profit of 4.58% last week. It is important to remember that such AI trading tools incorporate multiple strategies and parameters to make calculated moves, demonstrating the power of AI in modern trading scenarios.
FUBO in upward trend: price rose above 50-day moving average on August 15, 2024
FUBO moved above its 50-day moving average on August 15, 2024 date and that indicates a change from a downward trend to an upward trend. In of 36 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
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