Today I am sharing a snippet from my free weekly newsletter I send out each Sunday night (thetraderreset.com). I would love to hear what my fellow swing traders think the market may do this coming week.
Here are my thoughts:
Anything is game right now in the market. The pullback from last week paused at a key level as indicated by my yellow lines. If we break that line, we could be in store for another bearish week. I actually feel pretty beat down by the past week, so I don't feel I can make really objective predictions. What I can show you is what key levels I see, and what the weekly is doing for some extra clues. My thoughts below include the Dow's daily/weekly chart as well.
👀 Both daily charts show a failure to hold the rise on Friday. That is the long wick you see above the body of the candle.
👀 The movement on both daily charts is also a typically a bearish structure: a drop down, a rise to retest a certain area (in this case the moving averages) and then a continuation lower.
👀 The inability to pop above and close above the smaller moving averages is also a bearish sign.
👀 If we break below the yellow lines where the price is sitting, this could mean a decline toward the next yellow line (or for the Nasdaq, at least to the 50SMA, which is my pink line).
👀 If we hold at or near the yellow line both indices are currently at, this could mean the decline has halted, but will need a really good pop up to rally and to regain confidence.
👀 The indices are sitting on their 10EMAs (orange lines) and this too can act as support for a rise.
So with that, what do you see to add to this? or what adjustments would you make to my observations?
Here are my thoughts:
Anything is game right now in the market. The pullback from last week paused at a key level as indicated by my yellow lines. If we break that line, we could be in store for another bearish week. I actually feel pretty beat down by the past week, so I don't feel I can make really objective predictions. What I can show you is what key levels I see, and what the weekly is doing for some extra clues. My thoughts below include the Dow's daily/weekly chart as well.
👀 Both daily charts show a failure to hold the rise on Friday. That is the long wick you see above the body of the candle.
👀 The movement on both daily charts is also a typically a bearish structure: a drop down, a rise to retest a certain area (in this case the moving averages) and then a continuation lower.
👀 The inability to pop above and close above the smaller moving averages is also a bearish sign.
👀 If we break below the yellow lines where the price is sitting, this could mean a decline toward the next yellow line (or for the Nasdaq, at least to the 50SMA, which is my pink line).
👀 If we hold at or near the yellow line both indices are currently at, this could mean the decline has halted, but will need a really good pop up to rally and to regain confidence.
👀 The indices are sitting on their 10EMAs (orange lines) and this too can act as support for a rise.
So with that, what do you see to add to this? or what adjustments would you make to my observations?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.