Hello Traders, something new to report for all Netdragon Investors, the Hong Kong based chipmaker, has possible made a high of his advance wich is running into the twelvth week. After todays open and intraday high 20.70 , the stock reversalt strong and slose the day at 18.86. Second, it create a „bearish-engulfing“ pattern how it often occurs at a change of trend. Third, observe the volume spike at the bottom of the chart, which is clear above the average and extend to 3.931 M stocks, today. Fourth. Observe also a pattern, that shows the same characteristic pattern as of March 07-09 (highlighted with the elipse). And, it nearly met perfectly the blue dotted trendline and reversed from this level. Notice also, that at 20.10 level a 0.382 Fibonacci is placed, and the stock reversed at that zone. This all fact bring me to a conclusion, that at least net to get more evidence to develop. A possible long advance has come to an end today, maybe ending a wave (i) of larger degree. So at next a wave „(ii)“ has to occure, which has to become a „three-wave-pattern“! It is to early to judge, but is so, a multi week lasting correction should be next. On the other hand. If this pattern today morph into a failure signal, means traders by this stock tommorow above the 20.70 area, than it would mean, that the advance will extend much longer.
The next days will be very interesting in which direction this stock will run! Have a great day.... ruebennase
Feel free to ask or comment. Trading this analyze is at your own risk!