Tweezer bottoms are minor reversal candlestick patterns. However, as I mentioned last week, my experience is that they are fairly reliable. They form when two candlesticks have identical lows. In the case of the QQQQ, $37.92 was the low yesterday and today. According to Steve Nison, the pattern is more meaningful when the first bar has a wide body and the second bar has a narrow body. In our case, yesterday's bearish engulfing bar has been neutralized by today's NR doji like stick. Moreover, this price action took place strategically above bullish gap support.
I ran a quick scan to see if any other names formed tweezer bottoms today: ORCL, SMH, PLCM, and ALTR. Let's see if we get any follow through tomorrow.
1 comment:
Hi Jamie,
Could you cover STP for me please? I was waiting for a pullback after they declared their earnings, and it has actually pulled back to fill it's pre-earnings gap. I bought a small lot close to 28, but was wondering what your thoughts were on this.
Thanks,
AJ.
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