Can Kumo stop the price of SM from going down?

SM continue to move downwards after it shows a Weak Bearish Signal yesterday by way of a Kijun Sen Cross and Chikou Span is confirming the bearishness of the stock. Notice how the Kijun Sen has attracted the price of SM when it stayed in a horizontal line while price continued to rise before the consecutive fall. Remember that whenever Kijun Sen move in an horizontal fashion, price will be attracted by it and will come near it.

SM is now in the mercy of the Kumo or Cloud. RSI is quite low at this time although not yet oversold. In case we will have a bullish reversal pattern tomorrow from our candlestick then this will signal a reversal. Bullish reversal patterns such as Piercing Line, Hammer, Doji, Harami are some of the patterns we will monitor tomorrow.


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