Here we go again – from the looks of it, price is forming another classic Rounded Reversal Pattern complete with negative divergences, which would forecast a retest of 1,040. Let’s see what levels to watch that would confirm or disconfirm that view from a chart perspective: (Click for full-size image) Quick commentary shows us the…
If you’re a futures trader, or just watch the overnight/pre-market futures for guidance on what to expect for the trading day, then you’ve likely been thrown for a few loops the last few days. The futures will be sharply lower then right as the market opens, we’ll have a sudden surge higher… or vice versa…
After a major incident involving the stock price of a particular company, it’s always interesting to take a look at competitor companies to see how the incident has affected the share prices of related companies. Did it have a similar affect across the whole sector… or was it contained to the price of one particular…
Last week, I showed a chart of Gold’s Arc entitled: “The Arc Pattern and Support Test in Gold.” Price has bounced off the arc and key support at the $1,170 level, as shown below in the updated chart: We had arc support (shown in the chart below) and the support off the rising 50 day…
From one expected price level to the next – that’s how short-term trading works. Right now, we face the next key level to watch – overhead resistance – at 1,100 and so we play another round of “will it break or will it hold.” Here’s a quick update: The 1,100 level is ’round number’ resistance…
If you’ve been trading based on major headline news this week, you’ve been whipsawed so many times. Even if you’ve been basing your daily bias off the opening gap, you’ve been whipsawed. The last few days have seen a massive contradiction in where the overnight session traded and how the actual daily trading session resolved….
One of my favorite things about technical analysis/charting is uncovering past patterns that resemble what’s happening right now in the market. Doing so allows for comparison to see if history is repeating, and if history repeats – or the pattern repeats – then we have a literal roadmap to the future.
This is also known as studying the structure or character of a market – in regard to repetition in behavior and supply/demand.
It’s days like this that the broader investing public learn the benefit of even simplistic technical analysis and levels to watch.
You don’t have to be a chart wizard to know key levels to watch that are likely turning points in a market.
Today is the day – the market officially tested the February 2010 lows in the Dow Jones and S&P 500, a very likely downside target that has been fulfilled.
The question is – will the market hold these levels or continue on through them? Whatever happens at these levels will set targets for the near future, so watch closely.
I just noticed that FinViz – which stands for “Financial Visualizations” – has added a new visualization for the day’s activity, called the Bubble Charts. It looks like a neat tool that allows you to see the day’s (or the week’s or month’s) top and bottom SP500 gainers, by percentage, RSI value, 52-week High/Low, or…