There are several stocks that showed the same pattern. GE, BAC and a couple of others I frequently trade or watch.
Usually they give me a clear indication of the direction. In this case I've never seen it before. It was a new pattern for me. I have no answer since I've never seen that. However we now see the result and in my case did get long once the 10 MA turned up. Put it in the back of your mind now and use it for the future.
They are known as a "Shooting star" or "Inverted hammer" depending on the direction. Here is a link to explain the indicator. The important part of it is the preceding candles. That tells you how to read these indicators in terms of the coming direction. I have never seen so many though so tightly spaced. Based on the prior candles though my belief was an upward trend and I felt like they wanted to move it higher.
That's a great question and I believe this is what this board should be for.
STOCKGUY, I think the financials are not out of the woods yet. The ETF SKF has been climbing steadily this morning. Based on a number of fundamental factors, I am not expecting them to improve today either.
As to how this affects Ford, I am not totally sure. I know the GM news is having some effect but it seems to be mixed news more than directional.
Bloomberg has just reported that stocks are headed for their fourth straight week of drop.
Your candlestick analysis is interesting. I have spent a lot of time studying the various patterns and like you this one is somewhat out of the ordinary based on frequency.
It certainly seems plausible for a $3+ run up especially if they report decent results. I think it is likely that there will be a pr campaign of positive guidance focusing on the performance of the "good" bank. The article I referenced, and their detailing the performance of the "good" bank being profitable every quarter since 2007 is part of this campaign in my opinion.
I think that they report pre-market on the 17th so I will buy on dips leading in.
Good luck and thanks again.
Exactly. If the run up to the numbers seems overheated I will also sell pre-release. If it moves from it's current $2.59 to $3-$3.10 I will likely sell. If they report good numbers and push the good bank guidance, I will buy back in. With a decent report and guidance I don't see any reason it doesn't go back to about $3.70 to $3.78 near term.