I describe trading candidates and possible action for selected, low-risk trade ideas to review.
I posted yesterday about the importance of the $70.00 level as a “Line in the Sand” Support area for Crude Oil. Yesterday, price tested and – so far – held that level, developing a triple-swing positive momentum divergence along with a classic “Finger” Trade set-up/resolution. Let’s see those and the current intraday oil chart: Reference…
Friday’s action concluded with multi-swing positive momentum and internal (TICK) divergences, which forecast the likelihood of a retracement that was expected early in the week… but it looks like we’ve already had the expected – smaller than usual – and now the prevailing downtrend continues.
Today’s mid-day update brings us up to speed on the chart/analysis I showed yesterday which stated,
“If the Market is Going to Turn, it will do so Here.”
And that’s exactly what happened.
Here again we face a critical test of overhead resistance on declining momentum and market internals. That doesn’t guarantee a reversal, but it sure suggests one is likely… and if it’s going to happen, it will happen right here.
Ahh the finger trade. One of most traders’ least favorite outcomes and set-ups in the trading environment.
What’s the finger? Read on and let’s see how the market “gave traders the finger” this afternoon.Ahh the finger trade. One of most traders’ least favorite outcomes and set-ups in the trading environment.
What’s the finger? Read on and let’s see how the market “gave traders the finger” this afternoon.
Last Friday, I posted a comparison to the 1987 Crash to Today’s “Crash/Recovery“. The chart below is the 5-min intraday look at the 1987 October 19 crash: This Monday, as a result of the European Bail-out Plan, we see the pattern complete the “Recovery” portion of the crash. Let’s take a look at the current…
Traders paid a lot of attention today to the S&P 500 testing its rising 20 day EMA, but what you may have missed today is that Crude Oil did the exact same thing and now rests on its rising 20 EMA critical support line.
Let’s take a look at the chart and then see how oil made the rounded-reversal sell-off that took us to where we are now.
This is a special ‘breakdown edition’ of my intraday update posts, which takes a focus on three competing price patterns at the recent highs and then adds quick levels to watch for confirmation.
Let’s see the current SP500 30-min chart an hour after the open on May 4:
AK Steel (AKS) recently sold-off sharply after breaking down from a daily triangle pattern – a great example of the concept.
Let’s take a look at the daily chart then see the damage done and potential support level to watch on the weekly frame.
This is another update post from my prior updates last week,
“S&P 500 Remains Above Trendline Support… for Now” and
“Rising Trendlines… the Only Thing that Matters Now?” (still a yes it seems).