PGOLD on Harami alert

PGOLD once again knocking at the resistance level after accelarating from the 20-day SMA line. Current candlestick formation is a Harami where we see a large green candlestick followed by a small red candlestick whose body is completely engulfed by the green one. This is something PGOLD holders should be concerned of since it also formed at the resistance line. Based on our chart we could see that this is the 4th time PGOLD is trying to break from this line.

The Bearish Harami is a sign of disparity in the stock’s health. The market is characterized by an uptrend and there is heavy buying indicated by a green body, which further supports the bullishness. However, the next day prices open lower of the preceding day and stay in a small range throughout the day, closing even lower, but still within the previous day’s body. Traders are now concerned about the strength of the stock because of this suddenly deteriorating trend.

Caveat!

Leave a Reply