Thursday, October 15, 2009
Epure - it is time to take a breather!
Epure International closed with a black marubozu candle today at $0.61. It has also formed a Head and Shoulders and will probably retrace back to test the 20D and 50D MA support lines again. If it breaks these MA support lines and move south, the trend reversal is confirmed. The chart and candlesticks pattern look bearish. However, a retracement back to $0.46 (61.8% Fibonacci Retracement level) is good for a healthy long term up trend.
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Hi... i would like to offer altervative views to your analysis. Yes, a H&S was formed, but prices had already met the target for it... and as a matter of fact, prices had recovered and moved above the uptrend support. And prices now are still above the 10d and 50d MAs... MACD/Stochs looks alrite... how could the chart be bearish?
ReplyDeleteHi, you have a point too!
ReplyDeleteI was looking at the bearish marubozu candle today and also observe that there is price - volume divergence. Thus, the chart looks short term bearishness to me because I don't see how the bull can push the price up without the volume. Other TAs do not show bullish convergence and neither here and there. When things are in doubt, bear will take charge.
Thanks for your comment.