A selling climax appeared to hit the TSX Venture Exchange last Monday when the Index plunged 129 points and endured its 10th consecutive losing session. Investors brave enough to embrace the sell-off picked up some great bargains as the Index dropped as low as 1676. Such a dramatic fall over a short period of time (15% in just three sessions) is typical of an important market bottom. RSI(14) reached extreme oversold conditions.
The Index gained 135 points Tuesday through Friday and actually finished with a weekly gain of 6 points by closing at 1817. As John’s chart shows, the next apparent resistance is in the 1860’s.
Hello John, thanks for the chart – was the candle on Wednesday, 10th August a “bull hammer”?
Comment by Andrew — August 14, 2011 @ 10:03 am
Andrew
It was not a “Hammer” because it occurred during an upside move and not at the end of a decline(Part of a reversal pattern). It was the same shape but is not a “Hammer”.
John
Comment by John - BMR — August 14, 2011 @ 11:24 am
Got it! Thanks John
Comment by Andrew — August 14, 2011 @ 11:49 am