Take a look at the Snap weekly chart. A clearly defined bull flag has formed that suggests significantly higher prices. In July there was a spike up in price, followed by two months of sideways consolidation. The “spike” is the flagpole of the pattern and the range-bound movement between ~$80 and ~70 is the flag.… Read More »
We mentioned earlier in the session on Twitter that we would keep a close eye on the Apple close. Price was pulling back after being higher and it was forming an upper wick on the daily candle. Unfortunately for the bulls it continued to pull back and closed right about where it started, at the… Read More »
The daily chart of Coinbase (COIN) may have formed a double bottom. Increased buying pressure after a period of consolidation suggests the current path of least resistance is higher. The May and June lows first stood out to me on the Coinbase chart. There was selling going into the May low and there is buying… Read More »
Last week could have been a transitional period for the major market averages. The Dow Jones Industrial Average rolled over and sliced through its 50 day moving average, accelerating lower in Friday’s session. The decline in the S&P 500 Index began on Tuesday and picked up speed as the week progressed closing below its 50… Read More »
What is an eveningstar pattern and what does it mean when there are two eveningstar patterns on a chart. An eveningstar is defined by Investopedia as: The evening star pattern is considered a very strong indicator of future price declines. Its pattern forms over a period of three days: 1. The first day consists of… Read More »
The rally in Alphabet (GOOGL) may be over. This is a pretty bold statement considering the strength in the stock over the last six months. I’m not making a prediction but rather reporting on a technical condition on the chart and its implications for price going forward. That’s what good technical analysis does, it suggests… Read More »
Whatever you want to call Bitcoin, a digital currency, a store of value, or a separate asset class of its own, it charts like an equity. It goes through periods of consolidation followed by rally periods. This price action is a function of investor interest and sentiment. The more interest in a stock, the more… Read More »
I scan primarily for stocks with a combination of positive price momentum as measured by the Relative Strength Index (RSI) and positive money flow momentum as suggested by the Chaikin Oscillator. You can scroll through the “Chart School Technical Indicator” section of Stockcharts.com for information on these two indicators. Then from that list I drill… Read More »
A bullish triangle pattern formed on the Bitcoin chart last month. It signaled a pause in the long term uptrend and the beginning of a consolidation phase. This month Bitcoin is breaking out of the triangle consolidation and is moving higher. Follow-through price action is suggested by taking the height of the triangle pattern and… Read More »
One of the most watched for candlestick formations is the morningstar pattern. It is a three-day series of candlesticks that suggest the end of a down trend and a reversal to the upside. The first component of the pattern is a large dark down-day candle with the close near the low of the day. It… Read More »