Pocket pivot today when price hit 166.01 which is very close to the prior 2 bottoms making this a triple bottom. I am not sure this is out of the woods yet and it's sector, healthcare, would also need to come in to favor for this to move.
The point of posting this was to show the gap down closing candle that AMED incurred which is a bad candle to gap down on. It would make one think there will be further declines, as it has a long upper wick on top of being red. Gapping down is bearish in general, but the candle close can make a difference on whether you should perhaps wait to buy the security. I used to see this happen and think "Oh Wow" I can get this security dirt cheap. I finally figured out that even dirt can get cheaper )o:
A doji is preferable to this candle, and a green doji is better than a red one to close the gap down day on. Better yet, a hammer! LOL We can't always be that lucky but would be ideal. This candle, the initial gap down candle, has a long top wick and is a red candle. Price did not close at the low of the day (the low is the bottom of the lower tail/shadow and close is at the bottom of the candle body on a red candle) But did not make it far off the low at close. A green candle is opposite as far as the open and close, but the high and the low of the session is the same as a red candle.
There is also a shooting star and a hanging man at the top of the symmetrical triangle before the earnings miss. Candles can mean nothing at all, but often 2 or more can mean a lot. At or close to the top, this candle can be ominous. Weekly and monthly candles are stronger than a daily candle and on down the line. Long top wicks can represent a battle with overhead resistance (but you will usually see more than one candle fighting the resistance). Or a long top wick, especially without a bottom wick and at the top or close to the top, can be a signal to be cautious, as the candle will form a bottom tail/shadow, eventually, which can only mean price will go down to form that bottom tail.
AMED had formed a bullish cypher pattern inside the triangle, but could not get past the top trendline/resistance/of the triangle. This would be difficult for any security close to earnings as of late though. Having worked at Amedysis a long time ago, I have the feeling AMED was also a bit overvalued at it's high and the market has a way of correcting that, eventually.
No recommendation
The point of posting this was to show the gap down closing candle that AMED incurred which is a bad candle to gap down on. It would make one think there will be further declines, as it has a long upper wick on top of being red. Gapping down is bearish in general, but the candle close can make a difference on whether you should perhaps wait to buy the security. I used to see this happen and think "Oh Wow" I can get this security dirt cheap. I finally figured out that even dirt can get cheaper )o:
A doji is preferable to this candle, and a green doji is better than a red one to close the gap down day on. Better yet, a hammer! LOL We can't always be that lucky but would be ideal. This candle, the initial gap down candle, has a long top wick and is a red candle. Price did not close at the low of the day (the low is the bottom of the lower tail/shadow and close is at the bottom of the candle body on a red candle) But did not make it far off the low at close. A green candle is opposite as far as the open and close, but the high and the low of the session is the same as a red candle.
There is also a shooting star and a hanging man at the top of the symmetrical triangle before the earnings miss. Candles can mean nothing at all, but often 2 or more can mean a lot. At or close to the top, this candle can be ominous. Weekly and monthly candles are stronger than a daily candle and on down the line. Long top wicks can represent a battle with overhead resistance (but you will usually see more than one candle fighting the resistance). Or a long top wick, especially without a bottom wick and at the top or close to the top, can be a signal to be cautious, as the candle will form a bottom tail/shadow, eventually, which can only mean price will go down to form that bottom tail.
AMED had formed a bullish cypher pattern inside the triangle, but could not get past the top trendline/resistance/of the triangle. This would be difficult for any security close to earnings as of late though. Having worked at Amedysis a long time ago, I have the feeling AMED was also a bit overvalued at it's high and the market has a way of correcting that, eventually.
No recommendation