Tuesday, July 28, 2020

Winning Patterns on Weekly Charts + Bullish Engulfing Candle with N Pattern

SOLAREDGE
SEDG

OESX - Orion Energy Ord

THE N PATTERN After Bullish Engulfing Candle with huge Volume
RVP Made a New 78 Day High last May 4, 2020. It made new high again for 6 days but failed to hold it. Nevertheless, it pulled back just slightly above the mid section of its breakout candle and breaks out of the high of May 4, 2020. The pattern of its move showed an italic letter "N". After that pattern, Price kept going upward despite low volume. The Big guns are slowly acquiring position in smaller quantities, distributing their buys in succeeding days. 




RVP on July 27, 2020 exhibited some kind of abnormality in its price action. This could be a signal of something about to reverse. This is an exit signal. The big guys are not supporting anymore with the move. The price is being moved by just the retail investors, small time traders who are late into the game. Upper channel is also reached. 


RVP made New 78 Day High on April 8, 2020 with a bullish engulfing candle breaking out the failed high at $1.74 when it had a volume of more 3,757% from its normal daily volume last March 30, 2020. 
That March 30, 2020 was a first attempt to breakout at 1.74 but failed due to presence of many sellers. The high volume though represented a very strong interest of the stock. Price pulled back lower than the low of that March 30, 2020 breakout candle. Now if you trace the formation from March 30, 2020 to April 8, 2020 a letter "N" formation occurred. The candle is also accompanied with volume higher than the red volume which caused a down day on March 31, 2020.



 In 17 days, the target of 3.86 had been captured and price went even more to $5.00 on May 4, 2020. The volume had surged again for another 350% on top of the volume that made a significant rise of 3,757% on March 30, 2020. 



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