redbacka's - boom boom tuesday, page-133

Hi All,

The DJIA below looks like it may have formed a bullish "Morning Star" reversal.

This is made up of the last three candlesticks of the chart.

The first of these three days is a large down day at the end of a downtrend.

The second candlestick has a narrow range. There is an argument that this should gap down, but the fact that it is an inverted hammer may add strength to the pattern.

The final candlestick is a large up day. Again there is an argument that this only needs to close in the top half of the first candlesticks body, but as it engulfs the first candlestick, this may also add strength to the reversal pattern.

I also find it interesting as to how there is currently a divergence between the news which is still quite bad, and this reversal.

Because of this pattern, I am now short term bullish, but very aware of the possibility for quick sharp turn down. Very aware.

Apologies once again for my post on friday night to those that may have read it.

Thanks