As I mentioned in last night’s blog post, index prices had hit probable resistance, formed a doji, and were poised to head lower. Today, prices headed lower, forming dual-bear flags as further confirmations. Notice the first bear flag which set-up into yesterday’s price close. You have the first push down which is followed by a…
Could the US Dollar Index get any lower? Absolutely, as today’s price action showed us rather resoundingly: Not only did the index make new price lows, but it made new momentum lows, which could forecast even lower prices are yet to come. The index closed at $74.17, violating the late November price low of $74.50….
The Dow Jones Index has hit an area of supply today which may serve as an area of resistance. Let’s look: The 12,800 index level has served both as support and resistance during the last few months, and this area of supply is being tested currently. Notice the doji candlestick that has formed at this…
Today, Google (GOOG) shocked traders and investors alike, blowing past potential support at $500 per share and gapping down on significant volume to form a semi-hammer pattern. Let’s look before describing the picture: First, notice the massive triangle break-down toward the end of 2007. This led to a large volatility price move to the downside…
The market continued to defy the odds today and make new (relative) price highs in a price continuation move out of the recent triangle pattern break. This is a case where the technicals (price patterns) trump the fundamentals/news, as today otherwise would have been an immensely bearish day for the US Stock Market indexes. Let’s…
Adam Hewison of INO.com has introduced a new series entitled “Trader’s Whiteboard” in which he shares basic education regarding trend, trading set-ups, risk management points, and targets. In the first educational video, Adam discusses how to identify a trend and how to take advantage of the trend with entries and exits once you identify this…
Virtually every trader who uses charts has seen the recent symmetrical triangle forming in the major US Stock Market Indexes. Did we get a break-out buy signal today? From the chart (and zoomed in image), it would seem that indeed we did have a triangle breakout buy signal today, but notice that it was not…
According to a recent article by Rich Miller of Bloomberg entitled “Bernanke, Bush Fail to Build Better Economy with Cuts, Stimulus,” the recent economic stimulus may be nothing more than a short-lived, minor patch to a stumbling economy. I wanted to highlight a few key quotes from the article for your consideration and education: “The…
Let’s take a quick look at the weekly charts of key stocks or indexes to see what could happen in the weeks ahead. First, the Dow Jones: New Momentum Low (blue dotted arrow) hints that lower index prices are yet to come. Non-confirmation by volume (blue solid arrow) hints that the recent higher price swing…
There is so much talk regarding the US Stock Market triangle pattern, but did you know there were two recent triangles in the price of Gold? Let’s see what happened: The symmetrical triangle which formed through November until January broke to the upside as a continuation pattern and met its price projection target before reversing….