Bullish Harami on MER

While we are still seeing bearish trend based on Ichimoku on MER, there is an interesting candlestick formation today. Will this be the cue for reversal? The formation what we called a Bullish Harami. This suggests that while bears are controlling the stock for few days, we have now seen a green candlestick which in completely engulfed by the body of the previous day. This may signal a trend reversal since the second day’s small real body shows that the bearish power is diminishing.

RSI or Relative Strength Index is at oversold level and is now pointing up and looks like we have a good upside if price will continue to go up.

Caveat!

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