Today's price action on HTDS was very interesting. A black marubozu formed, but the bears were no match against the bulls and they were not able to pull the share price back down to the lows of the previous two days. This could be an indication that the bears are weakening.

The pattern formed over the last three days is really quite rare. As a matter of fact, it has only occurred two other times since December 31, 2007. This is to say that out of every stock traded on the NASDAQ, NYSE, AMEX and OTCBB over a period of 833 days, this price pattern has only occured twice.

On 10/05/09 the pattern occurred in AERCF. On 10/09/09 the pattern occurred in HBE. With both stocks, the price rose nicely over the following days - one to a height of 5.07% and the other to a height of 22.00%.

Note that I am not saying the same thing will happen with HTDS. It is just interesting to point out how rare this candlestick pattern is and how it appears shortly before decent price increases occur.

Tags: Htds

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