Another very interesting day which saw a high of 0.97, a low of 0.92 and a close at 0.95 (3.26%)
Now, for the last days anyone who has been reading my blog will have noticed I’ve been very bullish on Orko Silver and with very good reason cause the prophecised 1.00 was broken and we’ve had a very good run up. However I am now wondering if we are at the forefront of a consolidation?
Do allow me to elaborate…if you take a look at the daily chart you’ll notice that I put a ‘Doji‘ comment on the chart with a question mark.
Now, for those not familiar with Japanese candlestick patterns that won’t mean much but to those who are familiar with them will know what to look for in the coming days if the confirmation comes.
Those not familiar with this pattern, a Doji is characterized by having a very small body, meaning that we opened and closed at the same price.
Now if that doesn’t mean anything to you, allow me to confuse you even more, if you look at a Doji like a Dojo where a bear and a bull will engage in combat which lasts several hours and leaves no clear winner or loser…then that would be a Doji.
However, in this case the no clear winner part is not entirely true. The Doji we are seeing now has appeared after a strong uptrend. That makes a huge difference since a Doji on its own doesn’t mean much. Combine a Doji however in a strong uptrend or a strong downtrend and the picture changes completely…in this case favoring the bear over the bull.
When a Doji appears on a chart on a stock which has seen a big uptrend, it combined with other indicators (RSI) points to a reversal in trend.
So basically, what we have to look at tomorrow is,…is the stock going to close in the red or in the green?
If the stock closes in the green, fine, no harm done and we can move on. If the stock closes in the red we’d have to decide then if this is really the start of a consolidation and how big or small a pullback we’re looking at.
Other indicators are still pointing all upwards, so without the Doji I’d have written just the same outcome as previous days. Now, I’d say, I’m not so sure. I have to wait and see what tomorrows trading brings.
Take care and prosper…till tomorrow.
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