Christmas rally is over?

After reaching 6,059.78 today, index fell at the closing and ended at 5,923.12 Is our ran to 6K over? Our chart today is showing an Engulfing pattern with the small green candlestick yesterday engulfed by the long red candlestick today. This pattern is a reversal pattern which could mean a retrace in our index. Notice how the 20-day SMA line was able to resist the price from moving up. This also happened last December 2.

Notice also that price has come near the Kijun Sen which we said it has a strong power to attract price if it is going horizontally. Now that is has touched it, the resistance at this line may hinder index to continue to move up. Looks like the Christmas rally is over?

Caveat!

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felix

A computer engineer by profession and loves to develop online systems/websites. A self-taught stock trader who loves to share his knowledge and enjoys learning, expanding knowledge and staying well-informed. Most often he uses candlesticks, Fibonacci Retracement levels, Ichimoku system on his technical analysis but loves to hear some rumors as well.

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