Originally Posted by
Phaedrus
Good on you Hoop. I agree 100%.
Ah, now here we part company, Hoop. FPH is not "flirting" with the longterm downtrend line at all. It has in fact [B]re[/b]confirmed it. The intraday spike that you speak of is actually very Bearish. FPH rose a lot, but heavy selling pressure pushed it right back down again, below the Open and even beyond the Close of the previous day. FPH is a Sell. Looking at the short-term chart :-
Here we can clearly see a Dark-Cloud Cover candlestick. These are a Bearish formation. Some factors intensify the importance of Dark-Cloud Covers. They are :-
(1)The greater the penetration of the black body into the prior white body, the greater the chance for a top (reversal).
(2) The formation of this candle on greater than usual volume.
(3) A long upper shadow.
ALL of these factors were present.
This candle fairly screams SELL! and needs absolutely no further confirmation before acting.
This is a textbook example of simple trend analysis. Today's weakness should have come as no surprise to anyone.