NIHAO bottoming out?

NI is showing some bullishness today after 9 consecutive red candlesticks. Does NI bottomed out today? The last two candlesticks is a bullish pattern called a Harami. This pattern suggests that the power of the bears is diminishing but since this is a weak reversal pattern, we need to see a long green candlestick for confirmation. We may also consider a close above the 2.71 or 38.2% Fibonacci Retracement level as our confirmation since this is our immediate support. Test buy for a few shares below the resistance level would be a good one.

RSI or Relative Strength Index is still very far from overbought level.

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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