Post by
ZouZS3 on Dec 01, 2021 1:58pm
daily hammer candlestick
seems like Xebec right now... let's hope it's correct! What are your thoughts? When a stock makes a new 52-week low intra-day but fails to register a new closing 52-week low, it may be a sign of a bottom. This can be determined if it forms a daily hammer candlestick, which occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or near its opening price. This can trigger short-sellers to start buying to cover their positions, and can also encourage bargain hunters to start making moves. Stocks that make five consecutive daily 52-week lows are most susceptible to seeing strong bounces when a daily hammer forms.
Comment by
ZouZS3 on Dec 01, 2021 2:06pm
It means if the price closes above the 52 week low (2.49) and above open price (2.62) it's likely a sign of a bottom for short sellers
Comment by
ZouZS3 on Dec 01, 2021 2:11pm
and panic if it closes below 2.49 for 5 consecutive days haha
Comment by
ZouZS3 on Dec 01, 2021 2:22pm
Highlight: daily hammer candlestick occurs when a security trades significantly lower (2.45) than its opening (2.62) , but rallies later in the day to close either above or near its opening price (2.62)