Hey candlestick fans... we have a little challenge for you. Take a look at the chart below, a bare bones MetaStock candlestick chart of an unidentified security. We snapped it yesterday morning.
So you tell us. What does this chart tell you? Would you buy, sell, or hold... or what? Why? Don't be shy. Give us your comments below. We will publish a follow up in a few weeks, and identify the security... and the most accurate response. No prize involved, just bragging rights.
Good Luck.
So you tell us. What does this chart tell you? Would you buy, sell, or hold... or what? Why? Don't be shy. Give us your comments below. We will publish a follow up in a few weeks, and identify the security... and the most accurate response. No prize involved, just bragging rights.
Good Luck.
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| What would YOU do with this information? |
2 comments:
Sell. Reason:
1. Lower highs at peaks
2. Previous window (gap) was not taken out successfully.
3. Another window (gap) appeared and will act as resistance.
4. Long upper shadow on last two candles suggesting players are selling on any strengths.
Propose Profit Taking Level at 17.00-17.50. Further break of 17.00 to reinstate short position.
HOLD
why? Last candle is doji suggesting indecision. Price has been climbing but there is significant resistance area around 20.0. So would not buy or sell just yet. If in trade then hold to see if price closes above 20, if so then buy. If it bounces off 20 or moves down then wait to see if close below support around 18.5 before sell.
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