All week professional asset managers and large mutual fund companies have held the idea that as long as the Fed continues to prop up the economy the outlook is bullish for the market. A single chart not only disputes that outlook from managers running billions, but shows us that the best indicator of price is price itself.
The head-and-shoulders is on of the most recognized patterns in all of technical analysis. With the correct development, confirmation, and setup this high probability pattern deserves study by any serious trader.
Long term NG has been working a complex Elliott Wave correction lower reaching blue line projections at monthly $1.682 with a retest and bounce on momentum divergence. Market needs a zero line cross in momentum and break of the red line wave B to get long here.
Complex overlapping corrective structure is defined by the orange median line study. Mathematical symmetry and momentum divergence at blue line $319 can signal price exhaustion as this level has been tested 3 times.
The final swing looks to be developing in 5 waves of (c) and a break of wave 4 signals a reversal with a turn down in momentum target red line wave B...
One approach to trading a box range is to find a consolidating range bottom with low volatility. Buy when there is a test of the support level in an uptrend, placing a stop loss if price makes a new low. Increasing volume should confirm buying interest. After a breakout, buy on a throwback and retest of the resistance line.
The Nasdaq 100 futures contract is showing signs of weakness with momentum turning lower near term. Since the drop in prices at the end of September last year, the market has come back in a corrective price structure moving into the key red shaded projection zone above. The most recent swing is a rising wedge which is a triangle pattern with both trendlines...