The market is ranging, intra-day at least. Today's roller coaster ride seems to show just that. The market opened slightly lower and finished 1.43 points down. There are steep drops and steep climbs throughout the day in 2 complete cycles.
Candlestick wise, today's action could either be a hanging man or a hammer. Here is my basis of this ambiguous analysis:
Hanging man
A look at the 3-month chart shows a peak in a range or bear market. In this case, our hanging man marks the summit and a downswing that comes next.
Hammer
A look at the 6-month and 1-year chart shows a glimpse of the start of a new market cycle. This makes our like black candle with a long leg a hammer to mark a potential upswing next.
Fundamentally, economic news that hovers around have been less pessimistic than a month ago. Considering this shift in economic sentiment. It is likely a new market cycle is starting. Bullish people can start pyramiding on their long positions while the risk adverse ones can start to cash in on their gains and prepare to make new purchases.
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