Let's pull the lens back and put today's action in perspective
Prices jumped but closed below the open. Prices also formed a hammer -- not exactly the most promising candle we could see.
Also note the following:
-- Prices jumped into the 10 day SMA and fell to the 20 day SMA
-- The SMA picture is very confusing. While they are all going lower, they are also bunched together very tightly along with prices. In other words -- we don't have a solid direction either way right now.
Short version: when all is said an done, we're still pretty directionless right now.
3 comments:
Bonddad, when you say "formed a hammer," what do you mean, exactly? Could you explain both the structure to which you refer and the inference you draw from it, please?
A hammer is a chart pattern that can form on a candlestick chart. Because of the way prices moved today, the candlestick that is formed can be said to resemble the a hammer. It is a bearish symbol. I don't know too much about the different types of candlesticks but there is a bunch of good info available on the net.
hope that helps
Roger that, wilco.
Post a Comment