Everything is in price

Indigo: Dare to fly?

They say everything is priced in and many a time, how true it is. Let's see what's in store this time.

So the stock in question is falling past six months or so and now results are out for quarter ending June 2018.

Sure they didn't look good and market gave another slap to this already beaten down guy. As expected, it opened GAP down on 31st July 2018.

An interesting thing happened during the day, a tussle between the sellers and buyers (hopeful/value seekers/informed)? As a result at EOD (end of the day), we had a DOJI candlestick.

Now before we go any further, there must be a question in your ever curious mind.

Why RB has written a post on this stock?

Kindly read on:

Something prodigious caught my eye and I thought of sharing the same.

In the world of candlestick patterns, there is one known as 'Abandoned Baby'. It can be both bullish/bearish. Prior trend before the occurrence of this is of utmost relevance.

In simple terms, if the prior trend was bullish i.e. stock was going up and Abandoned Baby happens its considered bearish for the stock and vice versa. It a trend reversal scenario.

In the above picture, you can see four things:

1. The prior trend is down
2. GAP DOWN candlestick on the second day
3. GAP UP candlestick on the third day
4. NO overlap between candles in the box, clear gap present

Now here is the Daily TF chart of INDIGO

You can see in the above chart few similarities which point towards a probable setup of:

Abandoned Baby Bullish

Notes are mentioned on the chart, compare with the textbook example posted above.

Nowhere I am having any bias (positive/negative) towards this stock, all the more am curious to see how things shall unfold.

There is a small caveat here between the textbook example and real scenario. What's that? That's for you to tell me ;)

So, tell me Indigo, do you surrender with clipped wings or would you dare to fly again?

Cheers!!