Commodity ETFs Form Bullish Reversal Candlestick Patterns
Gold and energy equity ETFs formed bullish engulfing candlesticks during today’s trading session after printing bullish hammer reversal candlesticks yesterday:
The backtest results for a bullish engulfing candlestick in OIH are especially impressive over the short term (1-5 days):
This is the best sign of a reversal in these much maligned sectors that we have seen in at least a couple of months. One day does not make a trend but a trend reversal needs to begin somewhere, and these candlestick patterns are as good a sign as any that a reversal could be underway.