The stock made a marginal high today. One can notice that this stock is driven by headlines only. No consideration of fundamentals. Why? This is an overcrowded boat. China trade war bad news - the stock is first to sell. China trade war hope - a rally like there is no tomorrow. Nevertheless, the rubber is getting overstretched. A larger wedge is forming while...
In my last post I shared an idea to watch the wedge and a positive divergence for a potential upside move off the support. It did play out. Unfortunately, it happened in the overnight session. The day session was slow and uneventful. The FOMC minutes released in the afternoon had a muted reaction. The market spent time holding the overnight gains and drifted up...
A headline helped to break the previous support, now resistance, and led to a liquidation move back to the old support. There is a positive divergence that may play out . However, it is better to watch on a smaller timeframe a reaction first before engaging on the long side. Watch for headlines. I won't be surprised to see attempts to stop the downfall especially...
In the last post I shared an idea of a potential wedge break. It has been confirmed today and the price action started to unfold as it was expected. You can see on the chart a projected path. Some headlines along the way made attempts to stop the downside but eventually the bluff was called :) At this point I anticipate the action to fill that area and establish...
Today, the price advanced to retest the resistance and the first test attracted responsive sellers. One can see from the chart that negative divergence increased the odds. The price broke the trend line but ended up at the support. At this point we need to see a follow through and break of the support if not then the market is going to enter a consolidation phase...
Price made a marginal high but started to retreat in the afternoon session. Watch the formed wedge. The downside offers a better reward. Today's session is flat. A run to a new high is triggered by a headline. Perhaps, next days would provide more information. Negative divergence remains intact. 10/7/2019
Friday's rally across the board pushed the price back to all time high area. There is no doubt that the market participants had reversed their sentiment. Trapped shorts only added the fuel. But buying at this point even more riskier. Double top usually is a pattern that plays first before anything else . Even though we may not see a strong push back some selling...
Post NFP report created a strong push which set a direction for the Algos from the getgo. After that they just spent the day grinding up. Active traders that observe the price action should be familiar with the Algos behavior. The machines need a kick and direction. That usually news related impulses. Today's fading was simply risky. But next week could be a...
A strong move down driven by a headline with a strong reversal is today's theme. There are a few reasons for a strong bounce (look at a weekly chart) : - a failed attempt to breach a weekly trend line. - 50% retracement Fib level - notable positive divergence I did not expect a strong reversal, however, on my chart I had 7577 support level and put a limited...
A failed breakdown with a sharp reversal is the main theme of today's session. The price is back into consolidation area until a decision is made about this market direction. Trade the edges of this consolidation area. 10/3/2019
From the price action perspective the failed breakout has been confirmed. The price had retreated back to consolidation area and retested top of the broken wedge. There is a small bounce as well as the RSI oversold condition. At this point the sellers may try to push and break the consolidation bottom. If they succeed it could created a strong liquidation move. If...
An exhausted move right off the opening into resistance was met by aggressive sellers. The resistance was a confluence of a double top pattern and 20 day moving average. One can see how news are conveniently timed with the market structure. Whether this is a coincidence or not I would leave it to conspiracy theorists. In my case I put a limit order ahead at 7840...
In my previous post I outlined an idea of a previous high retest and potential to make a new all time high. This is what played out today. A strong momentum took the price to a new all time high. Unfortunately, it happened when the broader market started to retreat after a bad economic news. From a price action perspective we have an exhausted move with a notable...
The stock broke the consolidation range today and is in the trending up mode to retest previous high. There is a potential to make a new all time high. Until bulls failure is observed one need to trail stops. The top of the broken range is a good place to attract new buyers Who missed today’s move up. 9/30/2019
A slightly updated chart. Majority of the lines remain the same. One can look at my previous post. Despite all the headlines, downgrades, product reviews and so on - the market structure is intact and reflects the consolidation phase. I outlined the most immeadiate scenarios that could play out in the near term. The trend line and the support are most important...
On Friday the bulls tried to hold the trend line but eventually lost it. That led to a liquidation move and retest the support below which was taken out thanks too headlines. Price came down to retest low prices where responsive buyers were active. The last push up happened into the closing which may suggests a short covering rally ahead of the weekend. The market...
A flat day overall with opportunities for both sides. Short off the RTH opening, longs at support back to resistance. The sell side holds the broken balance. Lots of longs are trapped above and every time the price comes to that level they unload loosing positions. Pure market action. Not much to add. Until the supply is excessive the price will be held below. The...
A potential rally was suggested in the previous post. A fake breakdown of the support followed by a strong reversal. Notice positive divergences on the indicators. The trapped sellers had to cover and flip positions. A breakout of the smaller balance to upside added more fuel to the move. Now, the price is at inflection point while being overbought short term. We...