Trader's Logbook

Marc (MARCVENTURES) has been in a downtrend for quite some time now. Friday’s price break the 76.4% Fibonacci Retracement level and stayed above it until closing. Is this the start of a reversal? Notice that the last two candlesticks form an engulfing pattern. But observe that we do not have the right volume for now. If price will go below the 76.4% level then maybe this isn’t the time yet.

For the Engulfing Pattern to be a valid reversal indicator, we need a confirmation on the third day may be in the form of a green candlestick, a large gap up or a higher close on the third day.

Caveat!