Give thanks unto the trading gods. We had another test of the 34ema overnight, and went a little lower than the previous day. But thankfully, price reversed and closed above the 8ema and the 3ema. This is bullish.
The combination of today's candle and yesterday's candle form a Bullish Engulfing candle pattern on strong volume. This is also bullish.
At this point, stochastics have dipped down below the overbought range. So now it has more runway to run for another up leg going forward.
If you take today's range and divide by the range from the 6/8/20 high to today's low, you'll see we retraced 56% of that little down leg. That's plenty enough to consider if today was just a retracement before a continuation back down. Retracements are usually in the range of 38.2% - 61.8% which are Fibonacci ratios. And since we just formed an Evening Star pattern only 2 days ago, there's extra merit to this concern.
No comments:
Post a Comment