I am routing for an upward trend. Today we closed with a Maubozu Candlestick. This is very positive, but as explained below it does not indicate a continued trend:
In Japanese, the term marubozu means "close-cropped." It is also commonly referred to as “shaven head" or "shaven bottom." .Typically, the candlestick Marubozu is a long candle which means that the day's trading range has been large.
You will see that the Marubozu candlestick pattern lacks either an upper or lower shadow. Rarely, but you will come across a Marubozu lacking both an upper or lower shadow. Even after a strong gap, most stocks do experience a minor reversal, which does cast small shadow. Let us read more about the candlestick Marubozu pattern.
If a stock moves sharply higher during the day, day traders often seek to make profits toward the end of the session, creating a small upper shadow. On the other hand, if a stock has declined sharply, the short sellers will then generally cover before the close of trading forming a small lower shadow.
It is interesting to note a full Marubozu candlestick. A white candle signals extreme conviction among buyers and on the opposite, a black candle indicates that sellers were eager to flee.
The white marubozu candle is recognized by its long white body with no shadows on either end. Being an extremely strong bullish candlestick pattern, the day opens and prices continue to go up all day thus forming a long white day with no lower shadow.
The white marubozu pattern simply means that the opening price is equal to the low price of the day. Plus the closing price is equal to the high price of the day. This means that the buyers were controlling the price action from the first trade to the last trade The trend depends a lot on the general picture. A white marubozu may possibly make the first part of a bullish continuation pattern but it may also act as a bearish reversal candlestick pattern.
Block Volume 234,472.......there must be some more news on the way soon....or did everyone just finally realize how undervalued this stock is? LGF is definitely on the radars of investors....so let's see what is brewing besides the known perks....Nashville, Twilight, Anger Management starting up again in January for new episodes, ........someone on Market Pulse mentioned a possible upcoming deal with YOKU....no sources cited, so not very credible......Amazon deal......How much more news can we take!!!! :