Today's red candle looks bad but what we see is actually still bullish. Yesterday we closed above the 8ema and the 20sma. Today we gapped up at the opening. If Stochastics were overbought, then a gap up could be an "Exhaustion Gap", and that could be bearish. But Stochastics are in the mid-range, so a gap up is bullish.
We did retrace back down to close the gap, but like I explained in a previous post in this thread, that will relieve us of any "Gap Pressure". So, it can be a good thing. Of course, we can continue down and hit our Stop, but we don't need to worry about that today.
Notice the ADX DI+ crossed back up over the DI-. That's a bullish sign. And we didn't close below the 8ema or 20sma. In fact, today's Close is sitting right on them. This could be seen as support. Which would imply we'll head back up tomorrow.
Also, notice yesterday's candle made a higher low and a higher high than the day before. And we did the same thing today. This is bullish for continuing our uptrend.
Tomorrow could be an important day for our price action. We'll want a higher high and higher low again, but what we really want is to close near the high of the day.
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