We expected crypto to breakout at the beginning of last week one way or another but it still sees to be range bound with $46k as the overhead resistance. Buy the $35-37k range and sell around $43k until we get a close above $46k on strong volume.
The $35-$37k range for Bitcoin seems to be providing strong support but there's not enough buying interest to break above the $45k level. An intra-day spike below $35k followed by a close above $35k is a good buying opportunity for a long position. Bitcoin will eventually be an excellent hedge for inflation, however, since we are in the early adoption phase, long...
There was some strong buying at the recent lows that is reflected in the RSI divergence. There is a possibility of move up to 4530 level if this strength continues. However, the SP500 is also at the top it's steep downward channel and may just move south from here to the bottom of the channel. The market fundamentals are worse than when we saw the January lows so...
As you know, markets rarely move straight up and straight down. The battle between buyers and sellers with differing time frames and objectives guarantee it will always be a challenge not get shaken out of trades. The S&P 500 looks like it will hit the 3800-3850 region soon. However, There is a strong possibility that we see a vicious countertrend rally at either...
Cardano is in dangerous territory. Now that it broke the 1.03 support level, the next level of support is around 0.82. The volume and support at that level is not strong, so if the larger crypto market deteriorates over the next few weeks, Cardano could easily close below that level. Closing below 0.82 will likely see a strong sell-off to the 0.41 level. On a...
Until we see a strong close on volume above the 4550 level, the market will continue to develop a right shoulder. This will allow the SP500 to work off it's oversold condition while volume indicates that the market is distributing vs accumulating stocks. If this distribution continues, we will likely see the next leg down begin within the next few weeks and we can...
An expanding wedge with rising distribution volume, a possible head and shoulders formation, and a rejection of overhead resistance, all looks bearish in the near term. How the SPX reacts at the January lows will determine if we drop down to the 3800 level afterwards. Short term - Bearish to 4200 Medium - Bearish
The stock market will be volatile and probably trend lower in the next few month as inflation trickles down to consumers. This means we will get an opportunity to build a long term position in Netflix beginning at the $367 level.
I recently mentioned the possibility of a flash crash followed by a strong move upwards. There is still a possibility that the downside move is not completely finished. Two H&S patterns are potentially developing. A large H&S with a possible spike down to the $20k area and an inverse H&S which would put the next move up in the mid $50k range. Until the end of...
As expected, countertrend bounce came in this afternoon. Expect it to continue into tomorrow. I have highlighted on the chart 2 levels to watch for the turnaround. Due to overall weakness, at this time, it does not look like the bottom is in.
As you can see from the Fibonacci Retracements levels from the start of the bull market in 2009 to the top this January, coincide with the levels from the low of 2020 . Both these retracement levels point to the first target being 3800 region and the next down at 3200. It appears a right should is developing with the neckline around 4300. If that plays out, this...
The energy of buyers Bitcoin is weak. There looks a strong possibility of a flash crash down to the $30k or even a wicking down below that briefly to shake out short term traders. Long term HODlers should be prepared for this possibility and steel their nerves accordingly.
Following the rally yesterday, there was lots of excitement and exuberance in the market. Is the correction over? Are we headed back for all-time highs? Of course, it is possible. But countertrend rallies are by nature fast and furious, shaking out the nervous short-sellers. Until the S&P 500 closes above 4550, this is still a countertrend. If you were long and...
Crude Oil futures face significant overhead resistance. However, this does not mean that we are at the top. As inflation rages, CL may eventually break the $92-$100 chop zone. For traders who are long CL, this chop zone is a good exit point and a strong volume close above $100 a reentry point. It is likely that even if CL does not break through the $100 level,...
As you can see, the market is still trying to mount a countertrend bounce. On January 24 buyers did seem ready to step and defend the 4250 level I highlighted last week, but if you look on the intraday the higher volume was on the down bars. A key takeaway from the price and volume action is while we may go higher in the short term, the SP500 is in a downtrend...
The low energy and feeble desire for a bounce in stocks indicates we can expect a deeper correction (unless something changes from the Fed). Valuations returning to more normal levels is not a bad thing in the long run, but be careful with tech stocks at this point, only adding to positions as we correct deeper. Picking out tech firms with cash in the bank to pick...
The EUR/USD is reaching critical levels of support. The pandemic concerns and the Ukraine standoff will not last indefinitely. Expect banks to start stepping in around 1.105 level down to 1.080 level. This will signal a multi-year upward trend to at least the top of the near-term range of 1.20.
Technically a head and shoulder pattern may correct below the neckline the same distance between the head and the neckline. This potentially puts the H&S downside potential around $13k. This is VERY unlikely to happen as there is strong institutional support around $30k and again around $20k, but we should not be blind to the potential. However, until we close...