The market is approaching the 48,940 Support. 1M is supported there (RSI = 52.867, MACD = 574.500, Highs/Lows = 0.0000) and the current dip is a solid medium term buy opportunity. Assuming that a roughly -2% Lower High sequence will be maintained we place the next medium term target at 52,200.
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It was a mixed start to the week across global equity markets, with some major indices finding strong support from oversold levels (Europe) when viewed on a short term basis while US markets rose in the first hour of trade only to fail to hold it's intraday highs as sellers regained control and offload more stock at year-to-date lows. This time, fears around...
Looking at the TOP40 Index, we may derive the following from the weekly chart:
1. Price is at a notable resistance level where many rejections have occurred.
2. Prince is backtesting the weekly trend line break (purple line).
3. I am favouring a move to downside.
4. Since we are at a high, the risk is far less than trying to short once the move has occurred...
For people that like fractals.
Drop in October 2018 was 12 days long and drop 9% from the top or some 5000 points
Current drop is 13 days long same 9% and almost same 5000 points.
So if history repeats itself TOP40 should bounce for the first pull back.
But as it stands now this will be just pullback and more downside is on cards.
The top40 index (J200) has now broken two very important levels and is not looking healthy at all! Firstly we have broken down from the rising channel which has been in place for the best part of this year. Secondly, we have today broken below the 49200 level which is the neckline and horizontal support of the head & shoulder pattern. Based on the break of this...
This is not a pretty sight. Should we close at current levels (below 48950), next support levels only seem to be at 47000, which is very much where we started the year. We can clearly see that since the support channel broke on 9 May 2019, that the $JTopi’s momentum turned negative and still worsen every day. The Index is finding itself at extreme oversold levels...
J200 H4 (240 Minute) Timeframe
Reasons For Entry :
- Trendline Breakout
- Expanding Wedge
Everything Good Yearns Patience And Time
Disclaimer: Trading stocks, commodities, futures and forex has a level of risk and may not be suitable for all investors.
The Top40 has had a great run since the start of the year. On the way up there were two occasions when institutional supply entered the market (seen by the high volume) but was unable to stop the advance. Now the market has reached the highs were previous institutional supply occurred. However, the volume has declined in the leadup to the elections. Trading volume...
Within a bigger bullish trending channel there is a smaller bullish trending channel as well, the breakout of the smaller channel will be perfect entry for trendline breakout traders to target the support line of the bigger channel.
I'm very bad at calling "tops" & "bottom". If the market taught me anything over the past 25 years, is to NEVER jump in front of a moving train ;-)
Looking at the Top40 technically, it does seem like we're in "overbought" territory according to its RSI.
The trend is however very strong (moving averages are also starting to "smile"), we saw a "Golden Cross" on...
I have decided to have a deeper look into the technical structure of our top40 index which should give you a better technical view of what to expect from our market. Firstly interesting to note is that price has rejected off the 61.8% fib retracement using the last swing high and low that we saw between August and October last year. We have seen numerous topping...
Considering the number of stocks above the 50 and 200 daily MA we have seen a divergence with price. Price is making new highs but the number of stock above the MAs are decreasing. This indicates some weakness developing in the market and potentially and need to watch for reversal at resistance.
On the daily timeframe (TF) following the Wyckoff logic, there was a change of character that formed a Trading Range (TR) with the Selling Climax (SC) and Automatic Rally (AR). This is at the bottom of a larger TR on the weekly TF (See post below). After a Secondary Test (ST) of the lows, the price is testing the top of the TR again. This is also the 2019 Yearly...