Netdragon...Bearish-engulfing occurs!
Hello Traders,
Netdragon has risen as of the last analyse to 18.32 HK$ and reversed at this level sharp. It creates on a daily basis a „bearish-engulfing" which is a reversal-pattern, that often occurs after a long (up)trend and can be signal the start of a correction. Note that this reversal pattern occurs at a resistance zone, marked with the rectangle at chart.
Since the low @11.28HK$ Netdragon has risen ~7HK$, which is a solid ~63% gain. Not bad for 9 month of advancing prices.
So we have to face the opportunity, that a pause of the uptrend is next to occur, which is a good opportunity to breathe through.
For the shortterm the level of 18.32 is important. Any trading below this, increase the chance for a correction, which could have a target range of ~ 16.32, a 0.382 Fibonacci of the advance from 13.10-18.32! At the level of 15.40 a correction should end, otherwise it falls „out of range“ in Elliott terms.
On the other hand. If the high of 18.32 will be exceed, the bearish-pattern turns into a failed signal, that often is the best buy-signal and the trend is going towards higher highs.
So, for the short-term, the levels got set and we will see, how traders will act at Mondays trading start.
Have a great week...
ruebennase
Netdragon has risen as of the last analyse to 18.32 HK$ and reversed at this level sharp. It creates on a daily basis a „bearish-engulfing" which is a reversal-pattern, that often occurs after a long (up)trend and can be signal the start of a correction. Note that this reversal pattern occurs at a resistance zone, marked with the rectangle at chart.
Since the low @11.28HK$ Netdragon has risen ~7HK$, which is a solid ~63% gain. Not bad for 9 month of advancing prices.
So we have to face the opportunity, that a pause of the uptrend is next to occur, which is a good opportunity to breathe through.
For the shortterm the level of 18.32 is important. Any trading below this, increase the chance for a correction, which could have a target range of ~ 16.32, a 0.382 Fibonacci of the advance from 13.10-18.32! At the level of 15.40 a correction should end, otherwise it falls „out of range“ in Elliott terms.
On the other hand. If the high of 18.32 will be exceed, the bearish-pattern turns into a failed signal, that often is the best buy-signal and the trend is going towards higher highs.
So, for the short-term, the levels got set and we will see, how traders will act at Mondays trading start.
Have a great week...
ruebennase