Monday, March 06, 2006

Hongguo (H14) - The Game is not Over!


Let’s go to the standards. The green arrows denote bullish and the grey arrow a neutral stand.
Particularly interesting notes are the Triple Tweezers Top that sits squarely on the resistance line of $0.385. Zooming in (1) the blue patch, we can clearly see the bulls are losing its dominant position. This is also in tune with the so called bearish rejection pattern.
However, I have many clues to debate against these notions. Firstly we can see (2) the concept of the 3 white soldiers marching smartly upward. Then, (3) there is this single bottom which add strength to support the bull. The fact that the base line of the single bottom rested at $0.385 doubled its significance.
Whether this rally is sustainable remains to be seen. To me, it is very interesting because a “very good or very bad “event shall happen. Not in between. I’ve seen this type of pattern rallied to new height more than downward failure. Currently the range is $0.34 to $0.385. If $0.385 is breached, it is unden1ably bullish all the way!
P/s: Metalstock software said as below: So I take it as a CONCEPT not actual!
“Three white candles occurred in the last 3 days . Although these candles were not big enough to create three white soldiers , the upwards pattern is bullish”.
Bottom without handle examples

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