Stay away you might be catching falling knives

LTG fell by 3.9% today entering the Kumo or Cloud. No signal of reversal yet as we see a Black Marubozu candlestick and may signify that there is more storm to come. The support at 17.25 or 38.2% Fibonacci Retracement level may hold just like from previous price movements but the power of the flat bottom Kumo on the daily chart may be too strong for the bulls to prevent price from moving further down. Plus remember we have a Kijun Sen line moving horizontally on weekly chart at 16.43

For those who want to catch some shares, wait for a reversal pattern from the candlesticks. You might be catching falling knives.

Caveat!

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felix

A computer engineer by profession and loves to develop online systems/websites. A self-taught stock trader who loves to share his knowledge and enjoys learning, expanding knowledge and staying well-informed. Most often he uses candlesticks, Fibonacci Retracement levels, Ichimoku system on his technical analysis but loves to hear some rumors as well.

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