A few more TA remarks. I like to look at candlesticks, and there's some interesting things there. As we've noted there's big time double top resistance around $26. A couple days ago we had bearish dark cloud cover which sets up a resistance level on a close right above $24. As a bear, what I'd like to see today is a close under $20 which would give us a bearish engulfing pattern. Actually, we've already got it now were the day to end here because of yesterday's doji, but I'd feel better if it were something like $19 7/8. This is all Japanese charting theory, and reversal signals like dark cloud cover and bearish engulfing work best on rallies in downtrends, just like we have right now. IOW, if the general trend is up and these signals occur, it usually just signals a break in the uptrend. However, if the overall trend is down, as it is now, and a rally occurs, followed by one of these patterns, it generally indicates a return to the down trend. Well, it's a theory, anywhoooooooooo, think of it what ya will. I'm still looking for behavior similar to what we saw the week starting January 11th.
Anaxagoras (not a TA expert by any stretch of the imagination) |
