Bullish Harami Cross on BHI

After falling from 0.162 per share to 0.137 per share yesterday, BHI showed some bullish moves as it gap up at the opening and went as high as 0.14 per share. Although it wasn’t able to sustain the run, it formed a bullish reversal pattern together with the previous candlestick. The two-candlestick pattern is what we call a Bullish Harami Cross. If this pattern appears at the bottom of the downtrend it means that the bear’s power is diminishing. The doji is telling us that it is now showing lack of decision among traders. The increasing level of indecision and uncertainty amplifies the likelihood of a trend change and cause a reversal. Bullish Harami Cross is not a strong reversal pattern so we need to see a confirmation via a long green candlestick or a gap up. If price will close below the first candlestick’s lowest price then there will be no reversal.

RSI or Relative Strength Index is at 39

Caveat!

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