RLC may create a fire exit

Weekly: The drop of RLC this week almost make a Kumo break which could add a bearish signal to Chikou Span‘s already bearish sentiment. The Neutral Bullish signal on Tenkan Sen / Kijun Sen cross from last week is still there. This is called neutral bullish because the cross happened inside the Kumo or cloud. But there is also the danger that bulls will continue to shy away on RLC as Bearish Harami Cross has been confirmed via a long red candlestick. Be very careful on this stock.

Daily: Daily chart is showing a possible reversal via the Bullish Matching Lows. But because this is a low reliability reversal pattern, we need to see a confirmation the next day. Weighing the weekly and daily sentiments, I think RLC will make a spike but will not be enough for a reversal. Maybe just a fire exit for those who want to get out?

Caveat!

Leave a Reply