Trader's Logbook

We have just thought MJC will continue to go down further but it looks like it is already tired of going down. Good candlestick formation for today as it formed an Engulfing. This type of formation if found at the bottom of the down trend may suggest reversal. This is also a good candidate for another more bullish pattern which is the Three Outside Up. Also to take note that it breaks the resistance at 50% Fibonacci Retracement level and the rally was supported by good volume.

But there is one thing I notice about this stock, it will give you a large green candlestick and the following it won’t confirm the bullish reversal.

Caveat!