Many chartists and technicians have suggested the price action in Bitcoin over the last half of 2021 formed a massive Head & Shoulders top on the daily chart. The September 2021 high forming the left shoulder of the pattern, the November high the head, with the right shoulder formed by last year’s December 2021 and… Read More »
The NASDAQ Composite Index has traded down to a key technical inflection point. Support for the Composite resides in an area between the 15,000 and the 14,750 levels. On the lower end of the zone is the 40 week (~200 day) moving average, and the upper bound is reinforced by the intersection of two important… Read More »
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 »