Recon Technology, Ltd. (RCON)

[ospreyeye]

RCON Chart: Red Hammer Bearish Reversal Pattern formed Fri........Hammers formed @ Tops signal pullback & Hammers formed @ bottoms signal bounce.........

An interesting pattern formed the 26th through the 1st.........Bearish 3 Gap Ups.....

BEARISH THREE GAP UPS
Definition
This is a four day bearish reversal pattern. It consists of three consecutive days each gapping higher on the open. After Three Gap Ups the market becomes extremely overbought and ready for the reversal of the current uptrend.
Recognition Criteria
1. The first day can be of any color.
2. The second day also can be of any color, so long as its body gaps up away from the first day’s body.
3. The last two days are white and their bodies must gap up from the bodies of the prior days.
Pattern Requirements and Flexibility
The first two days of the Bearish Three Gap Ups can be of any color but the last two days should be white. There must be upside body gaps between the candlesticks.
Trader’s Behavior
The market is overbought with three gaps up in a row and it is time for profit taking.
Sell/Stop Loss Levels
The confirmation level is defined as the midpoint of the last white body. Prices should cross below this level for confirmation.

The stop loss level is defined as the higher of the last two highs. Following the bearish signal, if prices go up instead of going down, and close or make two consecutive daily highs above the stop loss level, while no bullish pattern is detected, then the stop loss is triggered.

RCON broke out from the 4 day bearish pattern.........but formed a Red hammer Fri.......I advise caution on Mon.....a Red candle & lower trading share price will trigger the Sell Signal.........new ratings system for Americanbulls........they have a Stay Long rating for RCON........check this out.........

RECON TECHNOLOGY
STAY LONG
Last Pattern:BEARISH THREE GAP UPS
Last Close:2.2394 Change:-0.0406 Percent change-1.78% 6 mo.Rating3?$100?146.5712 mo.Rating4?$100?282.0624 mo.Rating4?$100?1,539.86Signal Update Our system’s recommendation today is to STAY LONG. The previous BUY recommendation was issued on 4/12/2013, 21 days ago, when the stock price was 1.8340. Since then RCON has risen by +22.10%.Market Outlook The bulls are in full control. The negative sentiment that led to the last bearish pattern has evaporated. Besides, the signal is suggesting to STAY LONG. It is best to follow the signal and continue to hold this security.

http://www.americanbulls.com/SignalPage.aspx?lang=en&Ticker=RCON

RCON has been riding in the Bullish Upper Bollinger Band Channel.....the Upper BB @ 2.258 is resistance & MA(10) @ 2.083 is Support.......as long as RCON stays above the Middle BB/MA(20) @ 1.962 the uptrend should continue......

RSI pulled back from the Power Zone......Fast Sto @ 86.17.......cruising in the overbought power zone......Accum/Dist shows nice loading.......the Key now is to close above the May 2nd "closing" price.......that is the 1st resistance level to clear.......might see some consolidation @ this level similar to the end of April trading......

Very Bullish Chart.............nice end of April breakout from a solid base.......if MA(10) support breaks look for a nice bounce off MA(20).........Close Above 2.30 & it's major Showtime!.......

RCON on continue the Bullish Uptrend Radar..........$$$