OK ... we are now at a crucial support area, and my guess is this is where we will reverse. Here is why
* 33.5 is a previous support level so pure price dynamics should see it hold
* We had a gap down in price and a resulting candlestick called a DragonFly Doji. The psychology of this patterm is what suggests a trend reversal.
We have had a share in a current downtrend. THe price has gapped down (important), giving the Bears some "confirmation". The price continues down but is pushed back to its open price at the close. This suggests a balance in the principles of supply and demand ... ie the bears and bulls have agreed on a price (33.5). A share will trend, in either direction, when these is a mismatch in this ratio. So here we have been in a down trend, and we get an agreement between the two opposing "opinions". Normally this will suggest the end of the current trend ... and the possibility of a reversal.
The long lower shadow is also a bullish signal.
So at the very least, we should see the price stabilise, and the best a move up. But only time will tell :) For the candlestick pattern to be valid, confirmation will have to be today... otherwise its down again. THe confirmation will be a counter trend gap today.
SNN
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