Yesterday was a Doji candle, closing under the 8ema. A Doji connotes indecision. Today a decision was made. More downside.
Today's candle makes another Bearish Engulfing pattern. This is the third in a row. Don't know the statistics on this but I'd guess its pretty uncommon. Certainly adds credibility to our bearish thesis.
However, we are now sitting right on the 200sma, as well as the bottom of the purple range and the top of the yellow range, and the 34ema. This area could definitely provide some support. So we may see a bounce Sunday night and Monday. If so, I'd expect a 50% pull back of the range from the recent swing high (578 1/4) and yesterday's low (541). That would be (578 1/4 + 541)/2 = 559.63. We have to allow the occasional and normal pullbacks. We have our Stop working, and if its hit, the amount is within an allowable risk. If we get a pullback and a reversal back to our downward trend, we'll continue towards our target.
So all in all, our trade is progressing nicely. Its an easy decision to remain in this trade.
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