Let URC dip and wait for the bounce

Although our Ichimoku bullish indicators are still intact and price is still above the Kumo or Cloud, we might experience a pull back from URC this coming days. Today we see an Engulfing pattern from our candlesticks which suggest some bearish sentiment. Our Kijun Sen (red line) which is now in a horizontal line is attracting price back towards itself and bringing it back to equilibrium. This line may be considered our support line in case price will continue to drop. By the way Engulfing pattern have low reliability so we there is also a chance that will happen.

What is interesting here is that RSI was already at 70 yesterday and now its going down and will become healthier if selling pressure will continue. So I think the retrace will be a welcome development as long as indicators are still intact.

Caveat!

One Response to Let URC dip and wait for the bounce

  1. […] has been falling since the last time we saw the Bearish Engulfing Pattern. Notice also that we have a triangle formation where our recent fall can be considered our lower […]

Leave a Reply