The past two days was good for ORE holders as the price of the stock went up in succession. But can it sustain the rally? Today’s action seemed to indicate an indecision among traders. This results to a spinning top candlestick. Also notice today’s volume is significantly low than the previous day.
Spinning top candles portray situations where the market is having difficulty coming to a consensus on a stock’s value. They are indicative of a market in which uncertainty and indecision prevail. Neither the buyers nor the sellers have a clear sense of which direction the market will head. The forces of supply and demand are equally balanced.
In the spinning top candle, the shadows are relatively small and the candle has a very small range. When combined with low volume, traders may be expressing disinterest in a particular security.
The best thing to do tomorrow is to monitor what will be the candlestick. If we will see a large red candle that closes below the closing price of Wednesday’s then we will be seeing an Evening Star. Although that formation still needs confirmation. Like in a chess game, do not settle for a 1 move advance.