Harami on ICT

Weekly: Weekly chart on ICT suggests that bulls are still controlling this stock with all Ichimoku elements showing green signals. Although price this week dropped by 5.7% This could mean a discount for those who would like to test the waters for ICT. For those who are still holding this stock when it was still low may continue to hold until some bearish signal will show up.

Daily: Daily chart is showing a little bit of concern as Tenkan Sen and Kijun Sen is now touching each other but we have some good indicator from our japanese candlestick formation. As you can see after few consecutive drops bulls seem to have stabilized the price action. Last Friday we saw a green candlestick and is within the body of the previous red candlestick. This pattern is what we called a Harami. This pattern suggests that the bearish sentiment brought by the bears are now diminishing but since this is not a strong reversal pattern, we need to see a confirmation via a gap up or a large green candlestick the next trading day.

RSI or Relative Strength Index is pointing up from oversold level.

Caveat!

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