Did UNT Just Give Us a Reversal Signal?
It's FRIDAY. On the watch-list for next week is UNT. Unit Corporation is an oil company out of Oklahoma. I believe it is about to reverse it's downtrend for some good profits and here is why.
1) The candle closed the day with a pattern called a Piercing Line. I won't get into the details of what makes it a Piercing Line, Google is your friend, just know that it is one and is an early indicator of a reversal. I'll link information at the bottom for you to research on your own.
2) Volume is bullish and above average confirming that today's price action is legitimate and there is good liquidity at this price level. Good volume matched with the candle pattern is compelling evidence.
3) The Relative Strength Index, or RSI, is OVERSOLD. It has just bounced off support with a double bottom and is tracking back up to the top of a downward resistance trend line. If RSI breaks through that it is another indicator that this downtrend is over for the time being.
4) Not shown here but the Stochastic oscillator had a bullish cross. If you're interested in seeing that let me know below.
5) Not shown here but the Parabolic SAR is about to make contact, another bullish signal. If you're interested in seeing that let me know below.
6) Not shown here but the Demand Index has created a BUY signal as of TODAY. If you're interested in seeing that let me know below.
Final Thoughts: Today's price action and candlestick patterns are an EARLY warning sign, a good warning sign for bulls, that a reversal is coming. However, to differentiate trading and gambling, you have to be patient by waiting for confirmation. So how do we know when this reversal pattern is likely to be real and confirmed? MONDAY MORNING GAP UP OPEN followed by continuation for the day. You may pay a slightly higher price to get in but your probability of it being a "good" trade are exponentially higher. Good Luck.
My price target is the low 13s from where it sits now at $9.62.
1) The candle closed the day with a pattern called a Piercing Line. I won't get into the details of what makes it a Piercing Line, Google is your friend, just know that it is one and is an early indicator of a reversal. I'll link information at the bottom for you to research on your own.
2) Volume is bullish and above average confirming that today's price action is legitimate and there is good liquidity at this price level. Good volume matched with the candle pattern is compelling evidence.
3) The Relative Strength Index, or RSI, is OVERSOLD. It has just bounced off support with a double bottom and is tracking back up to the top of a downward resistance trend line. If RSI breaks through that it is another indicator that this downtrend is over for the time being.
4) Not shown here but the Stochastic oscillator had a bullish cross. If you're interested in seeing that let me know below.
5) Not shown here but the Parabolic SAR is about to make contact, another bullish signal. If you're interested in seeing that let me know below.
6) Not shown here but the Demand Index has created a BUY signal as of TODAY. If you're interested in seeing that let me know below.
Final Thoughts: Today's price action and candlestick patterns are an EARLY warning sign, a good warning sign for bulls, that a reversal is coming. However, to differentiate trading and gambling, you have to be patient by waiting for confirmation. So how do we know when this reversal pattern is likely to be real and confirmed? MONDAY MORNING GAP UP OPEN followed by continuation for the day. You may pay a slightly higher price to get in but your probability of it being a "good" trade are exponentially higher. Good Luck.
My price target is the low 13s from where it sits now at $9.62.
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