Looking at the past few months on the downtrend. When price reaches the 20 day MVA (red line), it either pushes higher to the 50 day MVA or pushes lower to a lower low. I will be looking for price to move higher or lower from it's current position with those targets in mind.
XLE appears to have just gone through a false break downwards and returned back to the important 67.7 level. I would expect this price to continue up to around the 68.9 level, as that appears a good spot where the price will meet the 50 day mva and is also a monthly pivot level. Right now, I would expect price to continue heading higher or meet a little bit of...
SMH has been in a strong uptrend since the start of 2016.
80.5 seems to be a level which buyers and sellers have been battling recently. I will look for a move higher or lower based on who wins this battle.
TLT is at a level of previous support. I see two likely options from here
1. TLT heads higher, this would suggest the longer term downtrend has ended
2. TLT heads lower, I will be looking for this setup for the rest of the day. Right now there is a longer term downtrend and I would prefer to trade with it.
XBI is right at previous structure resistance with strong upwards momentum. There is a potential rising wedge pattern emerging on the hourly timeframe.
BABA is in a strong long-term uptrend and has been consolidating for a couple days. After a couple failed attempts lower we see a strong bullish candle on the open today. I am looking for this to continue higher. 1st target will be 117.3 and second target will be 119.7
I believe buyers are gaining control for XBI, I'm going to wait for the hourly chart to reach more oversold conditions then look for the price to continue higher.
GUNR appears to be on the verge of breaking higher out of a triangle formation. There have been a few pushes from sellers that have failed to move the price lower.
AMD has broke upwards through a triangle pattern and is holding above, look for this to continue higher to about the 16.4 level in the next several days
The S&P appears to be consolidated and moving sideways and I expect is will for at least the next couple trading days.
Right now, the momentum is heading down, but I wouldn't expect the price to break below 83. After the downwards momentum fades, I would expect price to retest the the highs in the 84.25 range.
Note the trend line break and the divergence in the Stochastic.
Don't really know a good entry at this point in time, could also consolidate for a bit...
Reasons I believe a potential trend reversal will arrive soon:
Price has pulled back into 50 Day Moving Average
Previous day's market hours opened with a gap lower and a push of buyers that failed to move the price much higher
Price is hugging the trend line, seems to need only a little push to break through
The Daily chart stochastic momentum index...
We saw a gap down on the open today. Regardless, buyers were still willing to come in and drive the price higher. I think this is a good opportunity to squeeze out the people who got short positions in early on what appears to be a top forming.
Be prepared for a gap up on the next open. In which case, I still wouldn't be afraid to open a position up. Looking to...
Medium term traders shouldn't be shorting this yet. We still have positive momentum on the MACD. Also, I think it's a bad sign to see buyers willing to come in and drive the price higher after a gap down today. I think this still needs more time before heading down.
A top appears to be forming on USO but medium term traders should not short yet. Looking at the MACD we still see positive momentum going on. It is safer to wait until we start seeing the MACD cross towards the downside before we look to short this.
