Hammer on EW. Could it lead us to a bounce?

EW has been declining for quite some time now and today it fell to as low as 26.00 but recovered some losses and close just a few flucs from the green department. The price movement today created a Hammer. This pattern occurs at the bottom of a trend or during a downtrend and it is called a Hammer since it is hammering out of a bottom. It is a single candlestick pattern that has a long lower shadow and a small body at or very near the top of its daily trading range.

The Hammer pattern is formed when the market showed bullishness after few declines. If this will be confirmed by way of a gap up or a large candlestick then EW might hit 28.50 soon. After that, it depends if the 50% Fibonacci Retracement level that will act as the resistance will be broken or not. If EW will turn sour tomorrow, it might hit below 24.00

Caveat!

2 Responses to Hammer on EW. Could it lead us to a bounce?

  1. […] and close just a few flucs from the green department. The price movement today created a Hammer. Hammer on EW. Could it lead us to a bounce? Reply With […]

  2. […] Hammer on EW lead us to a bounce. Currently at 28.40 per share, it is touching the 50% Fibonacci retracement level. If this will be […]

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