Talking about a hard hard fall. My mentor used to tell me that the bulls take the stairs and the bears jump off the windows… that was what we witnessed yesterday.
The Bears took out in one day what the bulls built in 3 days. The NSE Banking and NSEASI took 4.51% and 315.69 points (1.14%)
One good thing about Technical Analysis is identifying current candlestick patterns. One major one is the bearish engulf formation which indicates a strong and sudden shift of investor sentiment from bullish to bearish. All momentum indicators also showed a sharp reversal of momentum to the downside.
So, are we still safe? Yes, as the market remains range-bound since the middle of August to date, but we are certainly at the edge of the cliff once again.
Below stocks with bearish engulfing
NSEASI in a bearish Engulfing chart pattern.
NB Plc Bearish Engulfing might see stocks hitting the N42-N35 2009 levels
GTB Plc Engulfing pattern have support levels within current price to N26.50 zone
Fidelity drops within support levels
FCMB Taking back 3 days bull run to end up at support levels
Strong Bearish Engulfing patterns holding up from August
Afriprud Strong Engulfing pattern just took out 2 months bull rally
Bottom line As long as NSEASI remains range-bound some of these Engulfing patterns within support levels remains good entry points.