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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Q8 who wrote (83033)	4/15/2007 2:19:17 PM
From: chowder	Read Replies (2) \| Respond to of 206281

Re: BHI ... Although rising wedges are reliable reversal patterns, they must confirm. In looking at the last 4 candles on the chart, I see two up days followed by two hollow red candles. These hollow red candles are bullish. The candle is formed by price gapping down at the open and then closing higher than the open, although just down slightly from the day before. The gap down in price came from the overhead supply waiting for the gap to close so they could sell and get out even. However, demand has been willing to offset that supply, hence the two hollow red candles. If price trades below Friday's low of the day, it would confirm a reversal, short term, and then trigger a short position, in my opinion. Since Friday's candle was a narrow range bar, there's very little risk in waiting for confirmation. On the other hand, if price trades above Friday's high of the day, the rising wedge pattern is nullified and a long position should trigger and the odds increase of testing the February highs.