I like this stock and these are my thoughts:
The stock stopped today at a very strong support that lasted from 2015-03-31 to today. It was a resistance from the beginning to 2016-05-31 and then the resistance line became a support line. The stock bounced 3 times and bounced back higher and im expecting the same thing tomorow. There is a nice engulfing pattern so that brings more strenght for a reversal of the trend. Not only the fact that there is a nice support line, a nice engulfing pattern but there is also the MA200 who acted as a support. Why an engulfing pattern is strong? This is because friday , the stock did not move at all and was very indecisive creating a small body. Then ,the next day (today), the stock gap down. With a gap down, the bears took the control but then, the stock pushed higher so the bulls took the control and finished the day with power. The second candle engulfed the first one and now we see that the emotions went to indecisive to bullish.
The stock stopped today at a very strong support that lasted from 2015-03-31 to today. It was a resistance from the beginning to 2016-05-31 and then the resistance line became a support line. The stock bounced 3 times and bounced back higher and im expecting the same thing tomorow. There is a nice engulfing pattern so that brings more strenght for a reversal of the trend. Not only the fact that there is a nice support line, a nice engulfing pattern but there is also the MA200 who acted as a support. Why an engulfing pattern is strong? This is because friday , the stock did not move at all and was very indecisive creating a small body. Then ,the next day (today), the stock gap down. With a gap down, the bears took the control but then, the stock pushed higher so the bulls took the control and finished the day with power. The second candle engulfed the first one and now we see that the emotions went to indecisive to bullish.
