Jun. 4 at 7:53 AM
$ZJYL At first sight, the last 2 days looks like forming a Bearish Harami.
It is a common trap, when you don't dig further into the pattern.
Here, they key is the daily volume.
The first day, the volume was 5.6 million premarket and 10.2 million during the regular trade.
The second day, the volume collapsed to 0.18 million only.
This difference almost cancel the pattern.
Additionally, in consolidation or low directionality phases, it often fails because there is no strong trend to reverse. ZJYL was flat for long, not in a clear downtrend, or an uptrend to reverse it.
So, until a confirmation, the bearish signal is not legit.
Imo, much more odds has the scenario of a second, higher spike in the next few days.
