Cisco has a very nice pattern in price action with lower lows, followed by lowers highs. The start of 2014 broke this pattern, turning the pattern to higher high - higher low. Last month there was some indecision, price going sideways, drawing a double top, then rejected it at the neckline. Currently, Cisco restested the double top neckline, and rejected it again....
Yesterday I posted a chart with my long term view on CLF. Here is the link Going with my weekly bullish bias, I regard today as a good level to go long because we have : 1 Class A bullish divergence on the MACD 2 slight bullish divergence on the histogram 3 price closed over previous low at 18.50$. Only worry is the falling volume.
First thing I need to say is that this chart is very long term based, more than one year. CLF is a mining company that specializes in the mining and beneficiation of iron ore and the mining of coal. Some of its competitors are VALE, BHP and RIO. Its chart is best correlated with VALE. What makes this particular stock more interesting than its competitors (all...
Update here I have been watching this pair for more than a month. First someone showed me the class A bullish divergence, but I thought it might be just a correction. Now, we have another divergence, class B this time, forming a Double Bottom with double divergence. Looking back half an year, the price action is by the book, with every lower low a lower high...
There isn't much I can add. All the stock market indexes are down. Of the markets I follow, Italy and Australia have been holding during this world panic the best. Still, the bearish signals are obvious, Australia making a double top with false breakout and divergence!
Please zoom in, chart is messy especially in the indicator area! Italy has been on a great bull run for half an year now. There were some minor corrections signaled by divergences, but overall nothing serious, the italian index rising about 40% in the last 6 months. I have labeled on the chart the corrections, and as you can see, every move up after the...
Asian markets gapped down at the open because of the Ukrainian situation. Chinese PMI came as expected, and I don't know if this is good or bad, remains to be seen how it will be percieved by investors. Looking at a chart of the British stock market, I see weakness. At first glance, looks like a consolidation at a very very strong resistance area, the previous...
There is a saying that appears in a lot of books "Plan your trade and trade your plan". I never did this. I always keep a trade that is on profit until it looks like the trend changed, I never plan my exits. This is the first trade where I'm gonna make a plan and trade it, no matter what happens. The US market opens in 10 minutes, and I'm gonna watch for the...
***After posting the chart, for some reason I don't know, probably a technical error, the hammer became a piercing line pattern. So no hammer, but piercing line*** First of all, I need to say that the trade has no confirmation yet, but it's starting to look bullish. As you can see, CME rallied to 85$ and formed a double top. Target was at 72$, and respected it,...
Like most indices and stocks, Kimberly is showing signs of a top. Kimberly Clark isn't as correlated with the Dow as let's say AXP, Disney or JPM, but it moves in the same direction on the longer term, so a short in Kimberly is a short on US market. Starting with the weekly chart, which is screaming to me SELL SELL! Class A bearish divergence on the MACD lines,...
It looks like it is the end of this wonderfull bull market in Japan, started by the Abenomics. The fundamentalist that I closely watch see's Japan as the weakest market in G7, so this confirmes my bearish technical bias. Starting with the weekly, things are pretty simple. A nice class A bearish divergence has allready decreased the Nikkei a lot, but I believe...
Why do we always say "this time it's diffrent' ?? Why, whenever a bubble was forming, people said it is not a bubble? Probably because our human desire to see the world (in this case financial markets) through utopic eyes, is stronger than our ability to see what is right in front of us, hence the problem everyone encounters, the trading psychology. William...
ERROR!!!!!! Im sorry for the error, this is the chart I meant to publish
Situation looking good all around the Globe, ECB is done, NFP tommorow and let's hope that will push stocks higher. Regarding Australia, which is a correlated market with Europe and US, I see a nice long. All explanations are on the chart, watch carefully the candlesticks when corrections ended. The bounce today invalidated a H&S, which means bears lost steam.
Well, I don't think there are too many people bullish on the stock market, or at least that's what I can see on various sites. We had a strong selloff last week, a selloff that now looks like it was predictable. I hear people saying that the year is predicted by January. We had a very bad January, so according to this theory the bulltrend is over. I heard...
Why is it so easy when you look back?? Well, probably because there is no emotion at analyzing the past. As you can see, there is a pattern going on here. I'm sure you heard the saying 'divergences are the holly grail of trading'. Well, a look at what happened after the crash of 2008 and it definetely sounds or better say, looks true. There is nothing much that...
Like the chart I posted earlier on 3M, theres nothing much to say here. Look at the green lines. Previous resistance levels become support after a short rally. The same case today, we had a retest of the previous resistance, hammer and lets see what will happen today. Final target should be over the resistance level, unless we see some bearish action there. I...