The Tesla TSLA Daily Chart Drop to Support July 6

Jul 6, 2017: 11:17 AM CST

Tesla (TSLA) shares plunged this week, collapsing from the $380+ peak toward the $300 level.

How did it happen and what’s the play from the currently achieved support target?

Let’s discover together:

Tesla TSLA

First, take a look at yesterday’s lesson on trend reversals in Foot Locker (FL).

With that information, we see a similar push up to new highs, a “double top” or “failure swing” testing the prior high above $380 along with caution/warning signals from momentum.

Volume similarly declined (diverged) on the second peak, locking in a non-confirmation of the new high.

From there, sellers became aggressive, collapsing the price lower beneath the 20 day EMA and then rapidly under the 50 day EMA.

The 20 and 50 day EMAs serve as targets and possible retracement buy points during uptrends.

Tesla shares plunged beneath these levels, not stopping once.

The breakdown took us toward the midpoint of the prior consolidation (highlighted) near $315 per share.

IF buyers fail to step in here and support the price, then we’ll likely see a full fall toward the next target of the rising 200 day SMA.

For this week and beyond, use the $315 bull/bear pivot as your “departure point” for your trades. Continue Reading…

Comments Off on The Tesla TSLA Daily Chart Drop to Support July 6

Emini Dropping Lower in our Fib Grid July 6

Jul 6, 2017: 11:01 AM CST

Even with today’s morning drop, the @ES remained within the Fibonacci Grid we’ve held since June began.

Here’s today’s updated Emini (@ES) trading levels for your trades:

Believe it or not, we’re STILL within our short and intermediate term Fibonacci Grid.

The yellow “midpoint” highlight stretches from the 2,420 level to 2,432.

Price gapped down beneath the yellow (tight) range this morning, reversing powerfully off the 2,414 pivot like that of June 9th.

Focus on the overlap pivot just above 2,420 for today’s “make or break” bull/bear pivot.

If you’re new to this style of simple level trading, welcome aboard and keep checking back or get more details beyond just the @ES (stock scans, money flow, education) by becoming a member!

Continue Reading…

Comments Off on Emini Dropping Lower in our Fib Grid July 6

The Foot Locker Dropper FL is a Study in Big Trend Reversals

Jul 5, 2017: 2:02 PM CST

Foot Locker (FL) collapsed from the highs, turning the trend quickly from up to down (bull to bear).

How’d it happen and what specific steps did price take ahead of the reversal?

Let’s use FL as a quick study in modeling long-term trend reversals:

Foot Locker gives us a textbook study in trend progression.

Trends begin from a period of stability or “Accumulation” (2008 to 2011) and move to a period of steady/stable upward action on rising volume and momentum.

We call this “stable rise” the “Realization” or “Mark-Up” phase and for FL, it lasted from the 2011 breakout to the 2015 first high near $70.00 per share.

Momentum began to diverge, price formed a flat/sideways trading range, and bearish volume increased during the final phase or the Distribution phase through 2016 into 2017.

Let’s focus our attention on this 2016/2017 “second rally” toward the new trend high.

Red or SELL volume INCREASED during the 2016 sell-off which is a classic sign of early Distribution.

This type of action – along with the DECLINE in buy/bull (green) volume (red arrow) on the 2016 rally further hinted that DISTRIBUTION was taking place as price pushed higher on weaker volume. Continue Reading…

Comments Off on The Foot Locker Dropper FL is a Study in Big Trend Reversals

July 5 Emini Update Still Playing in that Lovely Fibonacci Grid

Jul 5, 2017: 1:49 PM CST

The market remained within the tight Fibonacci Grid we’ve held since June began.

Here’s today’s updated Emini (@ES) trading levels for your trades:

Believe it or not, we’re STILL within our short and intermediate term Fibonacci Grid.

The yellow “midpoint” highlight stretches from the 2,420 level to 2,432.

We’re BACK within the short-term range.

Note the powerful V-Spike Reversal off the 2,402 confluence – also at the 2,400 “Round Number” pivot.

We’ll continue using these levels until we get an actual – not one day – breakout from the magnetic pull of the grid.

Despite the fun Fourth of July holiday, that day was not yet today.

If you’re new to this style of simple level trading, welcome aboard and keep checking back or get more details beyond just the @ES (stock scans, money flow, education) by becoming a member!

Continue Reading…

Comments Off on July 5 Emini Update Still Playing in that Lovely Fibonacci Grid

July 3 Holiday Emini Fibonacci Grid Planning Update

Jul 3, 2017: 11:36 AM CST

Fun with Fibonacci!  As we enter the 4th of July holiday, let’s update our Fibonacci Grid.

Here’s today’s updated Emini (@ES) trading levels for your trades:

Believe it or not, we’re STILL within our short and intermediate term Fibonacci Grid.

The yellow “midpoint” highlight stretches from the 2,420 level to 2,432 where price reversed this morning.

We’re BACK within the short-term range.

Note the powerful V-Spike Reversal off the 2,402 confluence – also at the 2,400 “Round Number” pivot.

We’ll continue using these levels until we get an actual – not one day – breakout from the magnetic pull of the grid.

If you’re new to this style of simple level trading, welcome aboard and keep checking back or get more details beyond just the @ES (stock scans, money flow, education) by becoming a member!

Continue Reading…

Comments Off on July 3 Holiday Emini Fibonacci Grid Planning Update