Bearish Engulfing Pattern

Posted by downtowntrader | 9/21/2006 09:45:00 PM | 1 comments »

Most of the indices had bearish engulfing patterns today which may signal near term weakness. Yesterdays highs will be key resistance moving forward. I imagine that we will know the staying strength of this rally within a few days.

Here are a few charts I'm adding to the watchlist.

Gold is very oversold and may get a short covering move soon. GG has made a lower low with a MACD divergence. There is a chance that a bottom is being put in.

JCOM may be trading in a bear flag here. If the Nasdaq is in for more then a pullback, then JCOM may fall apart.
REDF is coming into support here and may have a large move to either side.
RACK held up on a test of the 50sma and rising trendline. it may try and fill that gap and test the 200sma.
NSM has been moving nicely and may pullback to the recent pivot low soon.

Good Luck tomorrow.



  1. Anonymous // 11:13 PM  

    GG was one of Amaranth's larger holdings.