While browsing charts this morning, I came across probably the most perfect trade set-up ever – which may be an exaggeration, but I did want to highlight a bull flag into triple-confluence support which preceded an explosive move to the upside. Let’s see it and how it played out. SHLD (Sears Holdings) 60-min Chart: We…
A few readers have asked about the difference between Simple and Exponential Moving Averages and I wanted to address that in an educational post. In my charting, I utilize the 20 and 50 period Exponential Moving Average (EMA) and also the 200 period Simple Moving Average (SMA). I do this because I want the shorter…
Wednesday gave us a clean “Trend Day Down” example that will serve as a good reference to a classic “Trend Day.” Let’s look at the DIA and notice moving average structure, bear flags, and the trend move. DIA 5-min Chart: The first clue that we might have a trend day in price was the large-scale…
A reader brought to my attention a plug-in that allows you to archive every page on your blog into a neat, compressed page that is subdivided by month. I have created such a page entitled “Afraid to Trade Archived Posts,” – Archives for short – which is now available for you to navigate the over…
I wanted to highlight Goldman Sachs (GS) as it is in a structurally similar position to Caterpillar (CAT) which I mentioned in the previous post. Let’s see the confluence support below and possible resistance above and watch price closely for a break. Goldman Sachs (GS) Daily: Goldman Sachs broke an ascending triangle to also break…
While browsing through charts this evening, I came across a significant development in Caterpillar (CAT) that might be worth your attention. We have strong support on the daily chart and possible resistance overhead on the weekly chart – which one will break? Let’s look at these developments. Caterpillar (CAT) Daily: Without going into complex technicals,…
Let’s step back and see the full 2008 performance of the CRB Commodity Index and note its rapid ascension and stunning fall that marked an amazing year for the history books. CRB Index Daily Chart: Let’s focus only on the simplest technical structure for a moment – moving average analysis. Generally, in an uptrend, price…
With 2008 firmly behind us, I thought it would be beneficial to compare the performance of the S&P 500, US Dollar Index, 10 Year Note Price, and CRB Commodity Index to see how these markets were related in their moves throughout 2008. Cross-Market Comparison for 2008: Using a customized template in StockCharts.com’s “PerfChart” section, I…
What a battle we have going on between relentless bulls and emboldened bears – the struggle of which was evident in the push-pull ‘go nowhere’ intraday trading action seen on the broader US Equity Indexes and ETFs. Let’s look as usual under the hood at the 5-min DIA action to see the footprints of this…
Similar to the chart of Crude Oil, let’s take a moment to see the structure of the US Natural Gas Fund – UNG both on the weekly and daily charts. There’s some interesting divergences that might be of interest to you. UNG Weekly Chart: The Fund started trading in mid-2007 during a sharp run-up in…