With the US Dollar Strengthening, Gold prices have been falling lately and have officially confirmed a strong sell signal on the daily chart. Let’s view this action: Gold ($GOLD) Daily Chart: There’s a few things I want to highlight on this chart. I have literally highlighted (and expanded) the most recent sell signal in the…
Let’s look at three recent powerhouses that have been strongly pushing their way higher on less and less volume, which serves as a non-confirmation of higher prices. First, Potash (POT): This darling fertilizer stock which has been so strong through 2007 to present is now forming a potential blow-off top. Volume surged as price also…
Let’s look at internet giant Google (GOOG) to see if the stock may be at support or resistance. There’s a few patterns to note in the stock. First, look at the triangle consolidation (not shown) that preceded the price reversal at the start of 2008. Second, notice the stair-steps of lower lows that were met…
I’ve been doing some simulated trading on some FOREX cross-pairs and have been thoroughly impressed with the ‘trendiness’ that occurs with greater stability than stock index charts. I wanted to highlight three recent examples of this concept which is exciting to me. A ‘trend’ is a series or progression of higher highs and higher lows…
I’ve you’ve never seen a clear Head and Shoulders pattern, look immediately to Kendle International (KNDL). The stock is forming a broad H&S pattern, and the Right Shoulder actually developed a mini-H&S pattern within it – it’s one of the strangest patterns I’ve seen. I annotated this chart for visual clarity. The black lines represent…
Alcoa (AA), a Dow Jones component that manufactures aluminum and is taking advantage of the recent materials rise, broke key resistance to make a new high in 2008 today, and could continue higher to make potential all-time highs soon. Let’s see what’s up: The stock broke a rectangle consolidation period from $34 to $39 per…
Today’s US Stock Market Indexes surprised us with a semi-trend day. The day began with a perfect gap-fade and then gave us a ‘double-distribution’ trend day. Let’s look at it! In the DIA 5-minute chart, we see the day start with an opening gap that was filled and then the market trended in the direction…
So far, the US Stock Market Index trading has been stable using simple strategies that I have discussed frequently on the blog. Let’s examine the U-Turn Buy (or Saucer/Rounded Bottom) action along with the classic Gap-Fade trade today. You can almost ‘feel’ the balance shifting through simple visual inspection of the price action alone to…
Happy Mother’s Day! Let’s take a quick view at the Dow Jones Index, along with two key sectors which I’ll put in focus today – Materials and Healthcare. First, the Dow Jones ($INDU): The market failed at the resistance provided by the (now) falling 200 day moving average, and from prior support at the 13,000…
The US Dollar Index staged an impressive rally on the daily charts, but is currently failing to surmount resistance via the strong 20 period moving average on the weekly chart. Notice how the falling 20 period moving average (exponential) has served significantly as overhead resistance, thwarting any rallies ever since late 2006. Price recently tested…