I've decided to repost this under a different heading as i would like others to comment under a "technicals" post.
A massive white candle on close after a head and shoulders with a large volume on close indicates strong reversal. It also bypasses the minor resistances @ 5, 5.5 and 5.7c. I would have liked it better to pass 6c but looking at the selldown, this reversal in unbelievable. Looking at past white candle reversals for CTP, more than 70% of them yielded positive and sustained SP for more than a month. Furthermore, the rises yielded returns of 20-30% in the short term.
What do i think will happen tomorrow. I believe it will open pass resistance of 7c. If it hits 8c tomorrow, it will almost be a guaranteed 10+c share this week.
Good luck to all holders. For me, unfortunately ive sold down a significant portion of my holdings earlier after confirmation of the head and shoulders pattern. Its a loss that i had to take as a trader.
Fortunately for others, in technical terms, such a massive white candle reversal on close immediately AFTER a H/S formation is rare and signifies strong market acknowledgement of this particular find.
CTP Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
