Sunday, April 27, 2008

Yangzijiang Doji Candlestick Charting Pattern

The doji is a warning sign of a pending reversal. The lack of a real body conveys a sense of indecision between buyers and sellers and the balance of power may be shifting. The open and close are almost equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. The next candlestick bar may decide the new direction. Current location near the upper uptrend channel resistance line suggests there may be a pullback towards 50 days EMA support line followed by $1.05 support level . If this support does not hold expect further retracement to the 20 days EMA support and 97.5 to 96.5 cents support band. Breaking the lower uptrend channel support line will invalidate the current uptrend channel. Conversely a move above the top of the doji may be resisted by the upper uptrend channel resistance line . A breakout above this resistance will propel price to next resistance at $1.16 followed by $1.20 .

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