On the technical chart below..
* the candlesticks are showing a rejection/ or indecision of the market direction.. confirmation of this is normally by doji candlesticks.. to add further more accuracy the doji’s in this chart example are both bullish and bearish candlestick patterns…
* today candlestick pattern is a bearish dominant black candle..
* candlestick patterns are pulsing along the upper bollinger band..
* volume is indicating – low volume of trading over last couple days (this is typical for a bearish trade) buyers are holding onto there stock, in belief prices will hold
* stochastics – have turned negative and have crossed a few days earlier..
* RSI – have also turned negative.
* the MACD which is not shown, has also turned negative and is als showing negative divergence..
History also shows, that BHP will normally gap down from the mid point and base of the previous candlestick and quite accurately trades towards retracement levels..
For this trade, possible trading instruments, could be Short CFD, Bought Puts, Written Calls or short selling…
Cheers,
sis
ps.. please only take my charting and technical analysis as an assumption for possible future trades..
