DNL showing bearish bias via Harami pattern

After reaching as high as 9.90 per share, DNL showed some bearish bias last week leaving a Harami candlestick pattern. This pattern represents the weakening of the bull after the rally. Current support is at 8.97 per share or 23.6% Fibonacci Retracement level. In case this pattern will be confirmed and the support will not hold, there is a tendency it will go down deep with possibility of bottoming out at 50% Fibonacci Retracement level. Unless this line will bend it will continue to attract the price to come closer.

Based on Ichimoku system, DNL is still in a bullish bias so we can say that the correction of DNL is a healthy one. A test buy at support levels will be a good strategy but be watchful.

RSI or Relative Strength Index is currently at 73 and may continue to loosen up.

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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