Yesterday close lower than yesterday and extend the streak of 20-day lowest close to two and the streak of consecutive 20-day lowest low to 4.
Let's first see what happen after 2 consecutive days making 20-day lowest close. To find situation similar to today, I specified the following additional condition:
- Both volume higher than 20-day average.
- Volatility higher than 20-day average.
- Above 200-day SMA.
Since 2002, there have been only seven such instances and all have occurred between 2004 and 2007. Within the next five days, all instances moved higher than the open of the next day. Even though the size of sample is really small, I would be very cautios with any farther short postion in next few days.
