A Japanese candlestick formation called Three Black Crows is a bearish formation. It consists of three consecutive long-bodied red or black candlesticks that have opened within the body of the previous candle and closed lower than the previous day's close. It predicts the reversal of a current uptrend. Now, given that CAL was in a mini uptrend last Friday and Monday, the three consecutive red candles for Tuesday, Wednesday and Thursday may be considered as Three Red CALapatis, a miniature version of the Three Black Crows. While they are not really long candles, they possess most of the characteristics of the Three Black Crows. The Wednesday red candle indicates that buyers have lost interest or maybe got scared in buying this stock due to the investigation rumor or simply want to protect profits or at least what is left of it. The following two red candles are indications that the negative sentiment persisted and the holders are panicking and may no longer be just protecting the small profits left of their investments but are actually cutting losses in anticipation of a further decline in the stock's price. As it is a bearish pattern, it is expected that the price will decline further tomorrow - a profit taking Friday.
Well, that is what the candlesticks are trying to say but CAL, lest we are forgetting, is an illogiCAL and truly a magiCAL stock and has the capability to rebound, crazily and nakaCALoko. If the threat of the CMIC software has been factored-in already in today closing price of P9.31 and the jockey/s have declared it a Noli Me Tangere stock and CAL therefore is bobbing up and down on its own strength and weakness without artificial help, a catalyst (say a finding that there was no abra-CALdabra at all) will propel this stock to CALangitan once more. The highest it reached was P24 in June 4, i.e. twelve days ago.
My present harem is composed of ABeGail, Teresa DY, BoobSie Co and dun-dun-dun...CALypso (believe it or not).
FORE!
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