A white Hammer was formed on 29 July 2009 Candlestick, a very bullish reversal candlestick pattern. The white body this illustrates more strength coming from buyer than a black body (closing sp lower than opening sp).
The Hammer is hammering out a bottom. The Japanese word for hammer (tonkachi) also means the ground or soil.
The residual selling may occur for one or two days before a trend stars its move. The trend has a high probability of moving in an upward direction due to the change of investor’s sentiment.
2. Doji
Doji’s – were formed 30 July and 31 July 2009. Doji especially at significant tops and bottoms, can sometimes turn into support or resistance zones – those doji’s (at 23c and 24c) turn to be support levels.
3. Long white candlestick
The long white candlestick on 7 May 2009 propelled prices from 21.5c to 24.5c. Based on the precept that the middle of a long white real body is support for a stock, near 22.5c to 23c for IGR should then be monitored as support. The evidence was that the bulls moved in when the sp was pushed back to 22.5c on 29 July 2009, and sp was closed higher than the opening sp eventually.
Only the TA point of view and were checked with a few Candlesticks Books. Don’t know how to post a chart to HC poster.
IGR Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
