Though the overall stock market is in limbo as we kick off this shortened trading week, a handful of charts look like they're taking a pretty decisive turn. Some of the most interesting names of that group include China Energy Corp(NDA) (OTC:CHGY), Nevada Geothermal Power Inc. (OTC:NGLPF), and China Finance, Inc. (OTC:CHFI). Let's take a closer technical look at each one.
It wasn't a perfect example of it, but China Finance, Inc. (OTC:CHFI) made half of a marubozo reversal pattern (bearish, in this case) to strongly suggest there's more downside in store.
It takes two days to make this pattern. The first day ends with a close at the high of a tall bar, which China Finance, Inc. shares did on Thursday. On the second day, the open is at the high for the day, with the stock sinking - ideally - at least as low as the prior day's low....which CHFI also did. The perfect bearish marubozo starts with an open at the low of the first day, and ends with a close at the low of the second day. We say the daily high requirement take shape, which isn't perfect, but still hints at the spirit of the pattern.
In any case, the pullback on Friday carried China Finance shares back under the 61.8% Fibonacci retracement line, so there's not much hope left for a bounce here. It looks like CHFI is on pace to revisit support at $0.18 in the near future, which is where the rally started