when a candle becomes a hammer

Big upside will be released in UNX.

http://asxguru.com.au/

My last post about Uranex (UNX) was back in early January when the stock price had made a new 2 year high of 90c. You can see from the above chart that there has been a pull back from those highs and that a trading range was established. During Febuary, however, the turmoil in the Middle East sparked another bout of panic selling as investors once again started to think about the end of the world.

The chart shows a hefty sell-off to lows of 47.5c towards the end of February, but towards the end of the month, a support level was beginning to form at 50c. This is something that I identified last week and suggested to forum members that a reversal was imminent.

This morning the company announced that a recently completed radiometric review had identified a further 69 km of uranium anomalies at their Mkuju Uranium Project. The news was very good in my opinion, however during trading today, the reaction from the market throughout the day was pretty lukewarm. Towards the close of trading buyer interest did pick up and at the very close, the stock price managed to close on the day?s high of 58c.

As a result of the strong close, today?s candle became a bullish hammer. As I have mentioned already, a support level has been established so today?s hammer candle suggests that a reversal is underway and that higher prices will continue over the coming days.