ERHC Energy Inc (ERHE)

[ospreyeye]

$ERHE Chart #2 - a Bearish Hammer / Hanging Man did NOT form today, but a Spinning Top did form above the upper Bollinger Band @ 0.0031 signaling caution - during an up trend Spinning Tops signal caution & set up the potential for a bearish reversal pattern to form tomorrow - there are several bearish patterns that could form tomorrow w/ this set up - EYE will post one possibility -

the Key for the bulls is to continue forming candles in the bullish upper Bollinger Band channel between upper BB resistance & middle BB support - bullish stocks like $ERHE ride EMA's 4 & 8 support higher - as long as middle BB support holds the up trend should continue -

$ERHE needs to make a new high close above today's closing price to continue the up trend & avoid forming a double top - this is an important level on the charts - volume has been declining - keep an EYE out for a volume spike -

Possible Pattern w/ this set up -

BEARISH EVENING STAR

http://www.candlesticker.com/Pattern.aspx?lang=en&Pattern=3201

Definition

This is a three-candlestick pattern signaling a major top reversal. It is composed of a white candlestick followed by a short candlestick, which characteristically gaps up to form a star. Then we have a third black candlestick whose closing is well into the first session’s white body. This is a meaningful top pattern.