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Bearish Engulfing

SPX: Pullback? Maybe. Reversal? No.Hello traders and investors! Ok, so SPX did a new ATH today! This is incredible, right? Let’s see how to proceed from now on. The black line was the ATH before Covid-19 crash. Today, SPX clearly traded above it, but the movement wasn’t strong enough, and now it found its previous support at the purple line (3370). If this purple line doesn’t hold the fall this week, we’ll see a further pullback to the blue line at 3327, meaning SPX could drop around 1.3% in the next few days . But we must wait to see some confirmation , because it seems the support at the purple line is holding the price, for now. But since the trend is still bullish , a pullback would just be opportunity to buy. There’s nothing indicating us that the trend is going to change. Now, the daily chart: Today’s candlestick is pretty bearish, right? A Bearish Engulfing with low volume. In fact, the volume is decreasing lately , just when we are near the ATH. Maybe this is an indicator that the market doesn’t find the current level interesting anymore, and we need to see a pullback to get more stocks at a cheaper price. I never recommend to anyone to short an asset that is clearly in a bull trend, as the R/R ratio is almost never interesting. But when we are near resistances in a bull trend, I see just opportunity to book profits and wait for the next movement. If you ask me, SPX could drop something around 3% and hit the zone of this pink line at 3280 and this would be ok. The trend would still be bullish, and we would have more opportunities to buy stocks for a cheaper price. And please, support this idea if you found it interesting! And you are invited to follow me for more analyses! I just write a few per day, so, I wont bug you too much. Right now, I think is just the moment to manage positions. Not the right time to buy, neither to short. Yes, SPX could drop 3% in the next days, but we still don't have the confirmation of a pullback yet, so, be careful! Recent public trades (links below): XP: +30% AAPL: +10% LB: +45% UKOIL: +62% Congratulations to all of you, my dear subs, who believed in my trading methodology, and challenged the world by being a bull! We deserve to celebrate! BECOME A MEMBER! Remember to follow me , I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped. Thank you very much. * LIKE this idea and FOLLOW me, because: - Here, you will see clean charts; - Trades with clear risk management; - The best of Dow Theory, Price Action and Candlestick psychology; - Chart patterns with statistics. * * My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
SP:SPX
by Nathan_The_Finance_Hydra
6
New USDCAD bottomsWhile major pairs are still consolidating, USDCAD is making new lows. Here things seem extremely clear. - we have a downward trend of D1 - we have a downward trend of H4 - we have a downward trend of H1 - break of support - engulfing candle of H4 We expect the movement to continue towards the following supports: 1.3144 1.3107 Watch for a break in the trendlines and for initial depletion signals. To support us, please like and comment. Everything else is in the signature section!
Short
by ForexTrendline
2
Bitcoin Ramping up for 7.7k retest. Many Bearish Signs!!! Hello guys. Bitcoin has displayed many bearish signs. Firstly Bitcoin has broken out of its daily Ascending triangle downwards. This means that it will likely hit a target of 7.8k (Green zone). Bitcoin has also closed below the Daily EMA ribbon. Every time this happens it indicates that the daily trend has ended, And that we are about to go much lower. We are able to see this in previous history(Highlited by Green circles). Its likely that Bitcoin might retest the EMA ribbon. This might be a good place to place a short position if you havent already. Remember guys there is a CME gap at 7.7k Historically these fill, So Bitcoin might go back down to this zone to fill it. On the weekly time frame there is a Bearish RSI divergence and a Bearish Engulfing candle. We are able to see this here: These two signs indicate a reversal in the trend on the weekly time frame.
BITSTAMP:BTCUSDShort
by JayT121
Bearish Engulfing Pattern | AUDUSDThe Bearish Engulfing pattern consists of two candles. First one is a small upward candle followed by large bearish candle. The bearish candle must absorbs completely the previous one formed during the uptrend. The bearish candle is not required to cover the shadows of bullish candle. Requirements for validity: 1. Market in uptrend; 2. Small bullish candle; 3. Second one is large and bearish that compleately cover the bullishcandle. Tips: These are standard trading rules. There are many more specifics about order placement that I will reveal in the next posts! 1. Do not trade by candlestick analysis only! 2. Always do combine at least two or more analysis! 3. For example: - trend analysis (always works); - support & resistance analysis; - Fibonacci. 4. Follow us for more tips and analysis! Recommendations: Confirmation in the form of a downward candle with a closing price lower than the previous one or a downward gap is recommended, to be sure that the trend is reversing!
Education
by ForexTrendline
6
Waiting for the FED | AUDUSDAUDUSD reached its highest levels since the beginning of the year, recovering the entire decline! Yesterday we saw a Bear Engulfing, which signals the current exhaustion of the rise. It's caused by the accumulation of profits and the possibility of adjustment. Today at 18:00 (GMT) we expect Fed Interest Rate Decision. The news will be a catalyst for movement. As no matter where we see a breakthrough, we expect the price to continue. It is possible to place pending orders. Support levels: 0,6681 0,6538 0,6458 Resistance levels: 0,7177 0,7273 0,7357 If you find this useful - give us a like! If you have the same or different vision for the future movement - comment!
by ForexTrendline
6