Don't Ignore This Chart!

Steel ETF Hits Resistance with Bearish Engulfing and Harami

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The Steel ETF (SLX) is running into stiff resistance just above 75 with a bearish engulfing two weeks ago and a potentially bearish harami today. After a gap and long white candlestick on Tuesday, the stock moved sharply lower today with a long black candlestick. Today's body (open-close) is within the body of the white candlestick, which makes this a harami. A move below 73 would fill the gap and confirm the harami.

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Arthur Hill
About the author: , 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. Learn More
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