Planet Wealth - Australian Stock Market Education » Gap Down – JHX http://planetwealthblog.com.au We are a stockmarket investment company that educates people on the strategies we use to create both income and capital growth. Fri, 23 Dec 2011 00:20:36 +0000 en hourly 1 http://wordpress.org/?v=3.1.1 Gap Down – JHX http://planetwealthblog.com.au/gap-down-jhx/ http://planetwealthblog.com.au/gap-down-jhx/#comments Fri, 12 Dec 2008 23:58:26 +0000 Planet Wealth http://planetwealthblog.com.au/?p=196
Gap Down JHX

Today JHX gapped down 2.27%. Often when this happens there is a fundamental announcement, but not without prior warning on the charts.

Yesterday JHX produced a “Dark Cloud Cover” (DCC) candle stick pattern. A DCC is a bearish reversal pattern that can be very powerful when used with other entry signals of a trading system. This pattern will occur after a bullish run. The first candle, of this two candlestick pattern, is a long green candle. The second candle is a long red candle. The second candle must have an opening above the previous day’s close. The close must penetrate into the previous day’s trading by 50% or more.

Looking at JHX this pattern was produced under a weekly resistance line and weekly down trend line. The stock has also been making major Lower Peaks (LP) for the last three months. This added to the strength and probability of the stock continuing it’s bearish trend.

(click on image to enlarge)

121208 jhx Gap Down JHX

Go to http://www.planetwealthtradingroom.com for a live trading room

]]> http://planetwealthblog.com.au/gap-down-jhx/feed/ 0