Thursday, May 20, 2010

Filling the candlestick lower shadow.

The free fall on the 6th of May was a computerised settings by certain authorities in the exchange and not a human error.
Compared to July'09 till Nov'09 session,whenever the market falters either the President or Federal Reserve will come out with some goodies.
As seen from the chart,between November'09 and at end February'10,the use of Dubai crisis theme wipe off the whole quarter.
Whereas between March till May,the use of Greece crisis theme was used to wipe off the same quarter.
The candlestick pattern long lower shadow is now in play with many aftershocks.They have plans to complete the lower shadow coverings before Memorial Day.
Investor confidence was rattled by Germany's decision to ban risky bets on bonds, stocks and credit protection.
On the 6th May was a hangman,and the whole chart scenerio was to complete the head and shoulder pattern.

A toppish hangman candlestick was also formed.Yesterday's candlestick has completely covered the lower shadow of this week Monday's pattern.Meanwhile, France and Germany have moved to present a unified front on EU market regulation.
London's Footsie yesterday has also completely covered Monday's candlestick lower shadow.It is now at the neckline.
US Treasury Secretary Timothy Geithner will confer with finance officials in Britain and Germany next week about ways to restore global confidence in the financial system.