Last week, we took a look at Chinese bridge builder, Ossen Innovation and focused on the fact that it was bearish and testing a resistance. Ossen Innovation (OSN) Is Bearish and Faces Key Resistance OSN Daily Chart (click to enlarge) Bearish Signs:- First of all, OSN has been rallying since late December. - Although this rally seems to be in a bullish channel, the channel is actually just a flag pattern in the bigger picture. In other words, it is a small pullback that is vulnerable to a bearish continuation breakout.- Secondly, we saw that the RSI held under 60 for the most part. This reflects maintenance of the prevailing bearish momentum. - Finally, note that the 1/25 candle has its whole body as well as tails within the previous candle. - This is known as a Harami candlestick combination, though ideally, the 1/25 candle should bearish. But at the end of the day, the context is the same - that there is a strong resistance against the prevailing bullish attempt. - Furthermore, the 1/28 (Monday) session candle is pushing lower, which adds weight to Harami combination as a bearish signal. - A break below $1.40 would break below the flag pattern and signal a bearish continuation with the $1.00 mark in sight.- However, because of the Harami candlestick combination, a break below $1.55 could be an earlier signal for the bearish continuation. Here's another example of a Harami from stockcharts.com: (stockcharts.com)