AI
Saturday, February 12, 2011 2:50:51 AM
UMC - ninjatrader chart with fib lines and potential gains. UMC nearly had a dragonfly doji on Friday. It missed by 2c, which if you understand what a dragonfly doji is, (see below for definition) you will see that the concept holds true to form as if it were a dragonfly doji.
If the image is difficult to see, you can check out the image and short write-up on my blog UMC Fibonacci Analysis Here!
The first recent long leg up in the stock price took the stock from 2.60 to 3.60. The stock has since pulled back and bounced nicely off the 62% fibonacci line near 2.97 for 2 consecutive days, the last of which it formed a near dragonfly doji candlestick. Read below for the definition of a dragonfly doji and you will see the reason why I took a small position in the stock.
This should hopefully signal a reversal with the stock moving higher over the next few weeks. I anticipate a move of at least 10% - 20% based purely off the stock's technicals. I am going to investigate further about the fundamentals of the company, but I did take a starter position in the stock just before the close of the bell on Friday.
Dragon fly doji form when the open, high and close are equal and the low creates a long lower shadow. The resulting candlestick looks like a "T" with a long lower shadow and no upper shadow. Dragon fly doji indicate that sellers dominated trading and drove prices lower during the session. By the end of the session, buyers resurfaced and pushed prices back to the opening level and the session high.
The reversal implications of a dragon fly doji depend on previous price action and future confirmation. The long lower shadow provides evidence of buying pressure, but the low indicates that plenty of sellers still loom. After a long downtrend, long black candlestick, or at support, a dragon fly doji could signal a potential bullish reversal or bottom. After a long uptrend, long white candlestick or at resistance, the long lower shadow could foreshadow a potential bearish reversal or top. Bearish or bullish confirmation is required for both situations.
This is strictly my opinion, and I hope you will do your own due diligence before considering purchasing this stock. Do not invest solely on my opinion as I am never 100% right, I just like to think I am always right :).
Enjoy your weekend!
~Boochy
If the image is difficult to see, you can check out the image and short write-up on my blog UMC Fibonacci Analysis Here!
The first recent long leg up in the stock price took the stock from 2.60 to 3.60. The stock has since pulled back and bounced nicely off the 62% fibonacci line near 2.97 for 2 consecutive days, the last of which it formed a near dragonfly doji candlestick. Read below for the definition of a dragonfly doji and you will see the reason why I took a small position in the stock.
This should hopefully signal a reversal with the stock moving higher over the next few weeks. I anticipate a move of at least 10% - 20% based purely off the stock's technicals. I am going to investigate further about the fundamentals of the company, but I did take a starter position in the stock just before the close of the bell on Friday.
Dragon fly doji form when the open, high and close are equal and the low creates a long lower shadow. The resulting candlestick looks like a "T" with a long lower shadow and no upper shadow. Dragon fly doji indicate that sellers dominated trading and drove prices lower during the session. By the end of the session, buyers resurfaced and pushed prices back to the opening level and the session high.
The reversal implications of a dragon fly doji depend on previous price action and future confirmation. The long lower shadow provides evidence of buying pressure, but the low indicates that plenty of sellers still loom. After a long downtrend, long black candlestick, or at support, a dragon fly doji could signal a potential bullish reversal or bottom. After a long uptrend, long white candlestick or at resistance, the long lower shadow could foreshadow a potential bearish reversal or top. Bearish or bullish confirmation is required for both situations.
This is strictly my opinion, and I hope you will do your own due diligence before considering purchasing this stock. Do not invest solely on my opinion as I am never 100% right, I just like to think I am always right :).
Enjoy your weekend!
~Boochy
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