There are bullish engulfing patterns and then there are BULLISH ENGULFING patterns. Kohls (KSS) successfully tested support from its May lows with a bullish engulfing on high volume. Three items came together for this bullish signal: support, a bullish candlestick reversal and high upside volume. The more, the merrier. Note: This is an educational post featuring a technical analysis technique.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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