Thursday, April 17, 2008

Cosco Bearish Engulfing Candlestick Charting Pattern

Opening near the high of the day but unable to sustain the thrust up momentum resulting in a bearish closing at the low of the day. The bearish engulfing pattern consists of a small white candlestick with short shadows or tails followed by a large black candlestick that eclipses or "engulfs" the small white one. A bearish engulfing pattern may provide an indication of a future bearish trend. This type of pattern usually accompanies an uptrend in a security, possibly signaling a peak or slowdown in its advancement. However, whenever a trader analyzes any candlestick pattern, it's important for him or her, before making any decisions, to consider the prices of the days that precede and follow the formation of the pattern. A retest of recent low at $2.79 is expected and support failure here will result in price dropping to next support at $2.57 . Any unexpected rebounce will meet strong resistance at 20 days EMA resistance line and the red downtrend line.


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