Long on MULE
Updated
Great find on the day of the evening stars. After the Tech selloff it was a matter of looking at what candle was going to create the massive "Hammer". Eventually if you combined the three candles of the Morning Star Pattern, you get a big "Hammer". This one closed above the mid point of the sell of candle (~$24.76) and above the mid point of the IPO Opening candle (~$24.50), that gives a good signal in the long run. Currently the bears are still in control of the trend, and it is hard to tell without the Aroon Oscillator if we are in fact in an upside trend (not too many days in the market for MMULE), However, the short ratio is 1.64. The rule of the Japanese traders is to wait for a confirmation of the pattern, however Mulesoft business model is too good to let it run without us. Usually the Morning star pattern is confirmed if it opens up above today's close price of ~$24.97. With all things being equal, we are long on MULE.
Note
Not sure why it says KEM on Chart. However that is the correct graph for MULE. Pretty exciting trading day today looking to get through that $26 resistance.Note
Closed this one way to early around $27.30 (in at $25.01), after that the $27.60 level was rejected and confirmed with the doji gap down.
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