Wednesday, May 19, 2010

Solar Bounce play

Hammer Candlestick example image from Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms during an advance, then it is called a Hanging Man.-

I bought YGE, STP into the close today for a reversal(bounce play). You can see series of Hammer candlesticks forming in Solar stocks and it is getting way oversold. I am long term bearish on solar (based on the daily chart) but it should be setting up for a quick bounce. Let's take a look on some of these setups.

Disclosures: Long STP YGE for a day or two(most likely one day).

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