Makes sense to me dragon. But I think the key to many reversals is to understand the sentiment in one direction and see if the new reversal is supported by a change in sentiment. In Lyna, the downtrend at least in part, was that no buyers could buy the uncertainty and sellers bailed feeling helpless to the Malaysian government pressures. Now, the uncertainty is de-risked and the sentiment favors upside targets overall.
Granted that is not a modern day chartist analysis. But those sentiment factors are key to good short term trading AND chart reading. I see it as a two way street between chart and sentiment. And reversals are often the inflection point in that thinking. Just MO and these days I mostly invest.
LYC Price at posting:
83.5¢ Sentiment: ST Buy Disclosure: Held
