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Contradiction Of Res-Care Inc (RSCR) PDF Print E-mail
Sunday, 30 May 2010 20:06

After a break for a couple of weeks we continue to analyse the market searching for "tradable" stocks (CFDs). Today is time to pay attention to Res-Care Inc (RSCR) and signs on its daily chart presented below by CFD Dealing.


Daily chart of Res-Care Inc (RSCR)

Daily chart of RSCR

Several days ago the price of Res-Care Inc formed the Double Top pattern and went down. Now we can see the bullish High Wave and Morning Star patterns telling us that it's time for at least a small upside correction. However, the last 2 bars formed opposite patterns Hanging Man and Evening Star (not labelled on the chart). Thus, we have a contradiction. Which patterns are stronger and which way will the price go?

Rather strong recent sell out and the Double Bottom pattern indicate that in general we have a downside trend. But local rising correction was not developed enough to think that it is over now. There were only 2 rising bars that haven't reached even the half of the previous fall. That is why we can presume that there is going to be further rising to the level of about 50% of the previous fall and the zone of the Expanding Triangle that occurred in the end of March - beginning of April. the first 2 bullish patterns also create a support right now. After that further price fall may continue. Most probable scenario is shown on the chart.

 

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