very poor buying volume or demand into resistance supports thesis that it is the "last point of supply" before price break down.
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WMT is showing signs of accumulation. We can also see below that buying demand remains present while cumulative selling pressure is contracting. Price discovery is not trading high with much ease as we resistance because of possible longs trapped in last August positions and new shorts entering. Volume is contracting so I suspect prices will pullback again to...
CMG has been defining a clear level of support. What gets my attention is the HUGE selling volume that failed to break support or have any negative follow through. This looks like bullish absorption or ACCUMULATION
Early May we discussed that bulls were attempting to absorb supply and that prices should breakout and test the next level of resistance near $13.00. It has been a great 14% trade; however, cumulative demand is contracting. It does appears to be worth the risk of giving profits back. Anticipate we will start to see some liquidation to protect profits and reduce risk.
The theme remains bullish for "natty" as we rally off of support after identifying bullish absorption. We can see 3 months of ACCUMLATION here so it difficult to estimate an upside target but we can identify some anticipated levels of resistance at $8.00, $8.30 & $8.80 as well as "gaps" created during the "markdown." We saw a decrease in cumulative selling...
We are seeing organized accumulation at the 50% retracement which mean the overall trend for IBB remains intact and bullish. Failure to hold the 50% threshold would suggest that prices could breakdown to $200. In the meantime demand is contracting on this smaller timeframe rally. This will likely result in a re-test and confirmation of this level following any...
Bullish above $290. Buyer of $270 as risk is well defined IBB has been under accumulation for most of 2016. This is try because both the monthly and weekly vertical bar/candle stick charts are in distribution. In other words this smaller timeframe is in accumulation and upon testing $320 will likely encounter longer timeframe supply and continue to break down...
FB has been an exciting stock to trade. In April we saw signs of large profit taking confirming distribution into highs; however, bears were unable to break support. This allowed bulls to define prior resistance as support and suggest that bullish absorption of supply was present The large buying volume that made new highs but became a failed rally is...
Despite testing highs we are not seeing an increase in cumulative buying that would generally support "new highs."
Where has this weeks trading taken price action in relation to the monthly long-term mean?
LVS is a great review of accumulation, markup, distribution, and markdown cycles. Price action looks like we are seeing some accumulation. Recommend remaining CAUTIOUS on an entry as supply or selling demand looks to be present. If shares are not controlled by "strong hands" we may still see some volatility to shake "weak hands." Add LVS to your watchlist
Facebook is walking a "fine line" and is at risk for a reasonable "pull-back" (up to 10%) as it appears to be in distribution. So far the bullish upswings have been unable to regain ground within the ascending channel and therefore are confirming prior support as resistance.
$GDX appear to be going through another phase of bullish absorption of supply; however, in doing so violated the 2/1 Gann Angle. Law of Angle suggest that 3/1 angle support should be tested. This correlates with previously defined support 5% lower
UGI has spent 2016 confirming long-term resistance as support. Cumulative buying pressure is contracting suggesting a pullback to test demand (support). No signs of a "buying climax" yet.
SPY is showing signs of distribution on the 5 minute timeframe. Prices could close the "gap" and still only fall to the 50% Fibonacci retracement. This would leave the markets in idle and indecisive and bull bias would remain intact above $204.44