Thursday, 8 December 2011

Hong Kong Exchanges: Evening Star Bearish Reversal


Weekly chart shows a down trend.



Evening Star Bearish Reversal pattern formed at confluence of downtrend line, 100d SMA and $135 horizontal S/R level.
Daily stochastic oscillator at overbought level; Evening Star bearish reversal pattern satisfies the stochastic oscillator candle pattern filtering.
Daily MACD-Histogram has ticked down.


Outcome:

12 Dec: Opened SHORT at $129.20
10 Jan: Covered at $121.90
Reason for closing: Large intraday volatility on 9 Jan with long lower shadow.
Profit $7.30, 5.7%

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