Oversold, page-8

Daily chart shows near candlestick bullish engulfing pattern in an (extreme) oversold condition. Actually it is not quite a bullish engulfing pattern since the open yesterday (Tue 26th) was at the same level as the previous down day close. Normally the open on the green candle would be below the previous day close to be strictly conforming. The weekly chart is also showing oversold and a bullish Harami pattern. Also IBY is close to an extended double bottom on both daily and weekly charts.

So there are signs of some bullish activity, higher volume yesterday would have been nice but the market was pretty soggy yesterday and there wasn't much volume anywhere.

Confirmation would be a close today above yesterday's close at 28.5 cents. So we wait and see what happens today. The pretty sharp sell off since the big down day on the August 13th on high volume is pretty ugly but there is the satisfaction of knowing a lot of sellers have been mopped up since. The shorts eased a bit from $100K on Thursday 21st (30%) to $35K on Monday but which is still about 10% of turnover, enough to keep some downward pressure on.