F's downtrend started to flatten out from mid June (trading between 10:65 - 12.45), eventually breaking above the "neckline" @ 12.45 on 19 July. It retested this neckline a week later and held, giving conviction that this previous "resistence" is now a new "support". Today it gapped up on strong volume as earnings had surprised to the upside. It is likely that...
After falling about 52% from it's peak of 714 to a low of 339 on 12 May, INTU began to move sideways for the next 2.5 months, cumulating into a Symmetrical Triangle. It began to break above this triangle yesterday and today continued on the upward trajectory. The trend is clearly reversing to the upside now and any near term pullback should ideally not fall back...
ETSY hit a low on 24 May @ 67 and attempted to test this low again on 16 Jun, at this low, it has retraced 78% of it's peak in Nov 2021 and nearly 88% fib retracement of it's AB swing. It has been consolidating in a sideway range between 67-88 in the past 6 weeks and we are now seeing a possible bullish divergence with the RSI on it's monthly chart. A close...
I posted on 7th July that there was a potential bullish divergene on the monthly chart of Nasdaq, and it has since come true. What is interesting is that we are now seeing a potential "tweezer bottom" on the monthly as well (both bullish). The daily chart has been trading within a rising channel. With FOMC out of the way, there is a good chance for NQ to reach...
GOOG has been churning wildly within a rising channel since hitting a low in May. On a broader picture, this rising channel could be a bear flag within a bearish trend. With a very weak close last Friday, I would be cautious to buy this dip. With GOOG expecting to report earnings this Tuesday, we will know soon if this this rising channel will hold. Shall wait...
Quite a number of beaten down stock are showing bullish reversal formations. SOFI is looking to form one such pattern, namely the Adam & Eve. While it is still way below the 200 day moving average, it's RSI is strong and might be worthwhile to "test" some water on these stocks. However market turns could still be a very volatile period until it can go above...
After a spectacular fall (of 88%) all the way back to covid pandemic low, TWST appear to have found bottom @ abt $25 on 12th May and then retested this level again on 13 June. There were some signs of high volume accumulation on days following these low. The 21day moving average has recently crossed above the 50 day moving average and RSI is now showing strength...
Worst looks to be over for BABA after hitting a low on 15 March and then went on to form an Adam and Eve (A&E) reversal pattern. It broke above the A&E neckline 2 days ago. While the breakup volume wasn't impressive, it is however now above the 200 day moving average, which gave it credibility to likely continue in a slow path to recovery. (could chop sideways...
It is likey the low of 49.66 hit on 12 May is "the" low for now as we see a bullish pin bar has formed on the monthly chart on relatively high volume. Now appears to be forming the right shoulder of a Head and Shoulders pattern with neckline around 78. A breakup of this neckline (preferably on relatively good volume) will likely mean the stock has turned the...
RBLX fomed a mini double bottom and had been reversing up, testing the neckline at 36.4 before eventually breaking above on strong volume 2 days ago (5 July). It is now consolidating in a mini bull flag and the next breakup above 39 would increase it's odds of heading towards 50. However a reversal below 33.90 would negate this bullish momentum. Disclaimer:...
After 6 months of aggressive selling, both the Nasdaq100 and SPX100 are potentially forming bullish divergences on their monthly charts. Whether this will translate into a longer term trend reversal (to the upside) remains to be seen. However in the near term (likely for the next few weeks), we might see some rebound as market works off the deeply oversold...
INTU hit the low on 13 May and has not gone any lower since. It has been chopping sideways for almost 2 months and appears to be forming an ascending triangle (odds of breaking up is greater). On the monthly chart, we are seeing a possible 3rd inside bar this month and also a bullish divergence with the RSI. A breakup of the ascending triangle at 425 could be...
Adam and Eve (A&E) is a kind of "double bottom" pattern, a potentially bullish reversal signal. NIO broke out of the A&E patten today on a strong gap, increasing it's odds that the trend has reversed (to the upside) and is likely to follow thru in the medium term. Near term pullback possible (and could present opportunity to long at lower risk) but unlikely to...
I am watching to see if a breakup will materialise, and when it does, a high volume breakup will greatly improve the odds of this pattern succeeding. This pattern is formed over 3.5 mths+ which is rather short (6 months or more prefered), meaning it could face more near term resistences on the way up. If it could go above 135 eventually then the coast will be...
Bullish argument for LU: 1. higher lows (over the past 3 mths) with every dip leading to the formation of an Ascending Triangle. 2. now above 200 days moving average Waiting to see if a close above 6.43 neckline would materialise in the coming weeks, preferably on good volume. p/s the odds of breaking towards the horizontal side is higher for right angle...
Bullish argument for VIPS: 1. formation of inverted H&S 2. now above 200 days moving average 3. held above neckline and 200days MA for the past 2 wks Less bullish: volume is below average (would have prefered to see stronger volumes esp upon breakup) Let's see if this inverted H&S will work out. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your...
CRSP has been consolidating in what is potentially an inverted H&S pattern since hititng inot low on 12 May. Despite the overall market being extremely weak this week, CRSP dipped and quickly recovered forming a potentially bullish candle for this week. If CRSP can have a weekly close above 68 then there could be grounds for more optimism. However, a weekly close...
Cup and handle (or Cup without handle) are continuation patterns (of the prior trend). VET was in an uptrend before it went into a 3 month consolidation forming a "Cup" pattern. It finally broke above the neckline yesterday on STRONG volume (strong volume breaks tend to be more sustainable). Expecting near term target around 29.80 +/- with initial stop loss...