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 »
Since early September many of the large cap tech names have been moving basically sideways. Amazon (AMZN) shares are a perfect example. They have been headed right on the chart in an increasingly tight series of lower highs and higher lows. The price action formed a symmetrical triangle or wedge pattern on the daily chart.… Read More »
The month of November was been a positive one for the broader market, but it was also one that sent a number of mixed signals. The first week saw a sharp jump in the indices followed by a gap even higher to start the second week. But that gap-up day turned decidedly negative by the… Read More »
Back on November 9th a large wick shooting star candle formed on the Dow Jones Industrial Average daily chart and the $&P 500 Index chart. A large dark engulfing candle formed on the NASDAQ Composite daily chart. These candles suggested a broader market pullback was in order. There was a brief decline, but not the… Read More »
The broad market indices seemed to have absorbed and then quickly discounted (to some degree) today’s positive Covid-19 vaccination news. Within the first hour of trading the initial rally in the indices began to fade. They wound up finishing the session near their lows. The Dow was still up nearly 3% and the S&P 500… Read More »
Bitcoin has been making a steady series of higher highs and higher lows since it established its March low. In the process, it has also completed the right side of an inverse head and shoulders pattern. This pattern projects a considerably higher price target. But there is another interesting technical dynamic on the weekly chart… Read More »
Poor start to trading this week. The talking heads are out with a number of fundamental reasons for this morning’s downturn, that they didn’t see coming on Friday. What concerns technical analysts is not so much cause but effect. Simply, how information or misinformation plays out on the charts. The pictographs are where the truth… Read More »
At noon on Wednesday I Tweeted out “am I the first to call double top?” I attached this weekly chart of the NASDAQ Composite chart. The Tweet was tongue-in-cheek but as it turned out two hours later in another tweet, I noted a possible head and shoulders pattern forming on the daily NASDAQ chart. It… Read More »
Last month a head and shoulders pattern formed on the Dow Jones Industrial daily chart. The neckline of the pattern around the 27500 level was intersecting with the rising 50 day moving average. A break through those support levels projected a return to the 2600 area and had the potential for a much deeper loss.… Read More »
The previous post looked at the possible formation of a bear flag on the NASDAQ Composite daily chart. It implied a decline that retraced 50% of the previous March/September rally range. Another bearish reversal formation is under construction and near completion on the Dow Jones Industrial Average chart. A classic head and shoulders pattern has… Read More »