Bearish Engulfment Failure
Well, so much for that. I was all primped and ready to watch the stock go lower from here. What happens? The stock reverses back to the upside almost immediately. An almost-immediate reversal back to the upside indicates higher prices likely. I know, I know, I’m not saying anything earth shattering - just pointing out the obvious.
Do note that this mini-rally from the middle of the month is occurring with less momentum than the leg up that topped out earlier this month. Volume is not as high and just about any momentum indicator (Stochastics, RSI, MACD) will likely show a divergence if price closes higher than the previous all time high.
