The recent rallies have tested resistance at 41.84 levels which is at upper (see ).
While plotting weekly graph, "Shooting star" appeared at peaks of 39.54 that signals some weakness as leading oscillators diverge previous rallies.
Weekly and oscillators diverge to the previous rallies which is deemed as a reversal coupled with daily technicals.
Current prices slid below 7DMA, leading and lagging indicators converge prevailing slumps.
Daily technicals suggest sell indications as the signaling clear convergence with the dipping prices (currently 14 trending below 55 levels while articulating).
Convergence between price and volumes: See for dipping prices with stable volumes.
While, %D crossover sustains even at 50 levels on slow (currently %D line at 52.0517 & %K line at 39.6290), so overall we see selling pressures in this commodity at current stage.
At current juncture contemplating above indications, on speculative grounds we recommend shorting near month for target towards $36.21 levels.
Writers in a contract are expected to post performance bond margins in order to open and maintain a short position.
These margin requirements are determined by the exchanges and would usually be ranging from 2 to 10% of the full value of the contract.
1) First of all candle appeared on peaks, i.e. after 5 consecutive weeks, the pattern occurred at 6th week (it's certainly not 3 week).
2) The difference between day close and high is 2.33, thus the upper shadow is twice as big as the real body.
3) Real body is considerably big enough to satisfy the candlestick's feature, the difference is 12 cents. If it was less than 10 cents then we would've considered that as Gravestone doji.
Yes, you are right tail is a bit too long but not bigger than half the size of upper shadow, in the end you can atleast consider this as resembling shooting star.
Thanks for your keen observation and letting me know. Happy learning and trading, cheers..!!!