Inverted Hammer on SM’s weekly chart. Déjà vu?

SM continued to fall although we saw it move up last Aug 13 and 14 but the bullishness wasn’t sustained. Price now is below the 200-day SMA line but like last June, it trades below it only to rally in succession. This could happen again. 38.2% Fibonacci retracement level and the 200-day SMA line is our current resistance while support at 50% Fibonacci Retracement level.

Quite interesting is the weekly chart. It shows an Inverted Hammer, which if confirmed, may bring the price to the previous high we had. We need to see a gap up or a large green candlestick in order for the bullish reversal to be confirmed. See the Inverted Hammer and the large green candlestick last 3rd and 4th week of June?


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