Thursday, April 12, 2007

NASDAQ Technical Picture - Bearish Engulfing Pattern

Today's bearish engulfing reversal pattern marks some profit taking after this weak second leg up from the March lows. Initially, I'm looking at at 62% Fibonacci retracement of the second leg which lines up nicely with the bullish gap support highlighted in green on the chart above.

RIMM earnings were not all that inspiring as we can see from the AH trade below.



Is DNDN setting up for a reversal?


Economic calendar: Import/Export Prices and Initial Claims at 8:30.

4 comments:

nikki said...

Jamie,
Why do you call it a bullish gap?

Jamie said...

Hi Nikki,

Gap ups are bullish and gap downs are bearish. The technical significance of an unfilled gap is support in the case of a gap up and resistance in the case of a gap down.

hadman said...

Hi Jamie.

I traded CDWC today off of the break of the 10th bar high (which it broke slightly). Other than the long upper candle on the first candle, what else would have held you back?

Jamie said...

Hadman,

Read my post on CDWC above for my critique. I also had this chart on my gapper list, but did not trade it.