This one might be a bit too obvious to really happen but let’s look at a $MDY (S&P Midcap 400 ETF) daily chart.
We can a pretty large Head & Shoulder almost ready to trigger.
What is really interesting is the pretty large target we can guess from the pattern (35 points) wich should bring the whole market up to new highs in a rotation.
I feel a perturbation in the Bitcoin ($BCOIN $BTCUSD $BTCEUR).
Let’s see what the chart looks like :
Using Fibonacci, we can see price has retrace the big move before the crash to the 76 % retracement level and hold it.
The retracement has a pattern of a huge descending triangle.
Volumes confirm the shape of the horizontal resistance.
Soon the pattern sould resolve itself but wich way will it go ?
Usually a descending triangle is bearish but we can see another one in the price history that resolved itself into a huge move upwards.
I don’t have a precise opinion on the direction of the next move but my guts tells me it will be higher.
Only thing i know is it will probably a very big move because of this long contraction period.
Watch for volatility ahead !
$CDNS Cadence Design Systems Inc is howing an interesting bullish setup here that looks like a Cup & Handle.
The pattern is not book-perfect but from my experience ugly patterns sometimes performs quite well.
We’re looking to buy a breakout with volumes over 19.
The intrepid traders might of course buy right now without waiting for confirmation.
I would place my stops under the last higher lows at 17.50.
Our target would be a mesured 22.50.
Now that the japanese election is over might be a good time to have a look at the Nikkei (while everyone is looking at $RSX Russia 😉 ).
This is of course just a possibility but the $Nikkei could be forming the right Shoulder of an Head & Shoudler pattern.
Wich, as you know, is avery powerful bearish pattern.
Most daring traders could start a short position as soon as price decline from this shoulder but that’s a very risky trade.
The most patient will wait for a break of the neck around 16400 for a confirmation (this is of course what i recommand).
Target for this pattern will be around the last known channel resistance between 14650 & 14350.
Sometimes we tend to forget the most simple – and yet effective – principles of trading.
I’m talking about supports & resistances wich should be the first thing every trader look – before all those fancies indicators we love- .
Now let’s just have a look at a long term weekly chart of EURUSD :
I think the chart in itself is pretty clear and does not deserve much explanation.
With all those bearish view on the Euro at the moment, i think we’ll soon have a huge bullish move on the $EURUSD soon.
Of course, if the support is broken, i would become bear and short the hell of it like i’ve been doing the past weeks .
Today we are looking at the case of a nice bullish breakout on Financials.
Let’s first have a look at the $XLF (Financial Sector) weekly chart :
Everything seems to show a long term bullish move.
Price is in the upper part of a clear uptrend channel, MACD positive and accumulation is not showing signs of a stop.
Let’s look at the daily chart :
Price seems to just have broken an oblique resistance created in the beginning of the year with a nice gap.
The MACD has a bullish crossover on this move.
And we still have some room to go before touching the weekly channel resistance (shown in blue here).
So overall we have a lot of bullish signs wich is good for banks and for the $SPY in general.
Only sign that would worry me : is the lack of volume on this breakout.
This would have to be fixed on the following sessions or this should be a warning sign to the health of this move.
$ENT Global Eagle Entertainment : a Cup & Handle in the making ?
Pretty simple bullish case here on this ENT daily chart.
Price is forming what looks like a Cup & Handle pattern since a few months.
The pattern is less than perfect but from my experience that is not a reason enough to discard it.
The measured move would take us to 16 or 16.50 wich is actually the next level of resistance (last highs from April).
$BABA Alibaba is the new magic kid in town : everyones loves him !
No one is denying it made a great run the last two months.
So now that it is resting a bit, let’s have a look at his potential for the future with a four hour chart :
Applying a modified Andrew PitchFork, we can see two ‘touch‘ of the lower line (blue rectangles on the chart).
Having those two touchs dramatically increases the validity of the pitchfork we’ve just drawn.
According to the theory, price should now go up to touch the median line (red line on the chart) wich means at least a target of 120.
The interesting point is how this objective would means breaking all time highs wich in itself is pretty bullish.
A break of those all time highs would probably take us for another ten or twelve points (measured from the resistance from the gap at 108 to the actual high of 120) up to 132 !
Ladys and Gentlemen here is our Third Evidence for the bullish case on Solars.
The name is Sunpower ($SPWR).
This case is a pretty straightforward beakout with volumes.
If we look closer we can even see a nice Cup & Handle wich is always nice to follow.
We present you now the second evidence for the solar case : $FSLR First Solar.
FSLR is in long term bullish trend.
It has a history of long bullihs flags followed by violent break out.
Note the volume on the last break out.