Higher Low - A Bullish Trend

Today market sentiment is more toward bearish bias; the trading volume is very low in the morning session. Many of the counters I mentioned yesterday were under profit taking today. We hope this is a short-term healthy correction rather than a major correction.

The concept of "Higher Low"

You have to understand a counter cannot keep rising continuously for weeks or months without any correction. For a bullish trend to continue, there must be a healthy correction in between. For example, a counter was trending up for about 4 to 5 days. Many investors will start to take profit because they afraid the price may fall. When the stock's price drop to a certain level, it started to rebound again because many investors who "miss the boat" previously will rush in to buy. There must be some good news on this particular stock. So they will not wait until the stock price to fall until the previous low. The process will continue for a few times and the stock price keep rising for a certain period. This so called a bullish trend and the higher low confirms the bullish trend.

I quote you two examples below. Please review the chart pattern of Sapcres and Adventa.