BakerTech 050508

Baker Tech broke the downtrend support (mid red) and formed a Gravestone Doji today. Since the trend prior to this Gravestone was a downtrend, I'll take it as a Bullish Gravestone Doji, which is similar to the Bullish inverted Hammer pattern, which indicates a possibility of a trend reversal.



However, a lot will depend on what happens to BakerTech tomorrow. If it opens above the real body of the Gravestone Doji (which is 0.300), it means that those who had shorted at the opening/closing price today, would have to cover their shorts.

The longer BakerTech holds above the body, the higher chance that these shorts would be cover, which could then lead to a rally.

Since the Gravestone Doji opened much higher than the previous close, the opposite can also be true. Which means if Baker Tech opens below the Gravestone Doji, this would indicate that the uptrend (since 19 mar) has reversed.

So please beware !

For tomorrow :

Support @ 0.295, 0.2924 (mid green), 0.280 (green --), 0.278 (low green), 0.275 (low red)

Resistance @ 0.297 (mid red), 0.300, 0.308(upp green, upp red), 0.315 (pink --)

Good Luck !!