st reversal likely - fib, candle & momentum , page-3

G'day Rhodes,

Spot on, that's why I said PENDING CONFIRMATION of morning star candle pattern, which means it's not on the charts yet & we need to wait & see what Mon's candle becomes (hopefully it'l be the one I drew in dark green).

We now have one black candle, albeit small body, still at the end of an extended downtrend. The next small body white candle (on Fri), which gapped down on open but bounced off its low pretty hard & the final confirmation to see the morning star pattern complete will hopefully be a white candle closing near the middle of the 1st red candle (looks like around 38c at this stage).

Candle stick pattern by itself is sometimes not enough (like many other techinical indicators, u need to assess a few other indicators), but in MEO's case, it has retraced to 61.8% fib level & the morning star pattern (if it does form at close of Mon) can sometimes act as strong reversal signal. If it goes up to around 38 on Mon, id imagine the Stoch & MACD to both send bullish signals as well, which makes the charts bullish in traders' eyes.

of course the charts wont take into account of good/bad news to be announced or the broad mkt sentiment. If the Dow continues crashing next week & still no positive news arrive, MEO may slide towards 78.6% fib? Unlikely but who knows, so still caution to be exercised IMO.

GL to all faithful holders. Fingers crossed a cracker Mon for u all
JL