With the overall market finally putting in a consistent up day, we feel that this one offers a nice risk/reward opportunity..especially when you factor in that it was much higher just 5 days ago.
That being said, it was great to hear that one of our members picked up on the Hammer formation on yesterday's chart.
A Hammer Candle Formation usually indicates that a recent bear move has run it's course. Just by reasoning out it's construction you can see why this is so. After being in a downtrend, it opens the next day like it's going to continue lower and even makes a new low for the move..but it rally's back to close near where it opened..thus the Hammer formation..A small body with a longer bottom wick.
We'll be watching this one closely for sure...
Please join us for our Webinar tonight at 7PM EST where we'll introduce our methodology and perhaps explain some of the factors behind our recent interest in this one.
See you later!