As you can see recently the Heiken Ashi chart has given us a clue to a trend reversal. What I see is a series of long red candles and on Friday a red within the long red candle. This is slightly . To test my prediction of a trend change I look for regular Japanese candles to see if I can find a pattern. What we see in the Japanese is a cross. because of the last candle in a . cross can also be referred as a rinkenshaw man, or long legged . After rinkenshaw man set-up, the next candle that followed was yet another sign, a .
Last I look to see if we have divergence. For the past 4 months has been in a steady range as FTR has been hitting lower lows. Matter of fact we are near a in while FTR stock price has descending bottoms. If were breaching new lows while FTR stock was falling to new lows, technicians would assume FTR to continue. What I can asses from the is that FTR has capitulated. Recent higher on fresh lows after also confirms a psychological sentiment of capitulation.
Last indicator is stochastics, which recently crossed over. Crossovers are a sign that a reverse is about to take way. You may also see an occasional flat crossover suggesting the stock is building a support shelf. Shelf's are seen as even more . Notice we have divergence in stochastics to complement .
My lower price target for FTR near term is 4.60. This is slightly below resistance of the prior trending triangle. If trend continues and the triangle resistance is breached, investors could expect a price target as high as 6.00 or more.
Jim Cramer prepare to eat crow.