U r right, pete11, an bullish inside bar pattern, which is what AAD has formed, can be a sign of a bull trap. Inside Bar develops during a strong downtrend, when the trading range is completely within the bounds of the previous bar. The only reason for the even out of buyers and sellers is that the sellers r progressively waiting to sell, launching little by little until their holding or exposure is quashed and then they r out never to return. The bulls keep going relative to the "false" signal and then the next trading period, the sellers evaporate washing the buyers out, it jump diffuses downwards as the "false" balance of buyers and sellers is swung to unlimited sellers fire selling on the way down and increasingly buyers loosing confidence and deleting or refusing to plug in their orders.
A $1.80 bearish resistance is likely IMHO. The AAD trading of recent times has been more conventional than I thought possible on the ASX. there must be a lot of half reasonable bots and algorithmic program trading on the ASX after all. Restores my confidence in the market in the very least.
Terrible event tho, the DW thing, horrendous.
AAD Price at posting:
$2.15 Sentiment: Sell Disclosure: Not Held
