Bearish Harami on URC. Will the bulls be able to stop the bears?
URC is showing some bearish bias after the rally last Thursday that brought the price to as high as 135 per share. Notice the red candlestick after the large green one? The last two candlesticks is forming a Harami pattern.
The Bearish Harami is a sign of disparity in the stock’s health. The stock is characterized by an uptrend and a bullish mood, and there is heavy buying indicated by a green body but the next day price open lower of the preceding day and stay in a small range throughout the day, closing even lower, but still within the previous day’s body. Traders are now concerned about the strength of the stock due to this suddenly deteriorating trend.
Harami is not a very strong reversal pattern so we need to see a confirmation via long red candlestick. Notice also that our immediate support is not far at 130.27 or the 78.6% Fibonacci Retracement level. If this will hold then the Harami might be not confirmed. The retrace will also loosen the RSI or Relative Strength Index which is now starting to fall at 66 from 76.
More from my site
Latest posts by felix (see all)
- Philippine Stock Market – Update on selected stocks 4/21/2017 - April 23, 2017
- Philippine Stock Market – Update on selected stocks 3/31/2017 - April 1, 2017
- Philippine Stock Market – Update on selected stocks 3/17/2017 - March 19, 2017