Stocks Get a LiftStocks have caught a bit of a lift from lower levels. We have reached as low as 4440, before catching a bit of a lift that brought us back almost to a 50% Fibonacci retracement of the entire bear move. We finally met resistance at 4487. The Kovach OBV has picked up notably, but has since slumped over. Be careful about this move, it could just be a relief rally into an overall bear trend. After all, September is a notoriously slow month and we still have some news events that could be of concern. If we continue to see momentum, 4505 would be a great target, as it is the 0.618 Fibonacci level and the first major level of the 4500 handle.
Equity
SONY breaking out for the chargeBeen consolidating for a while but finally broke the bearish structure recently and is starting to head north towards to key areas of resistance.
Already got a position from the consolidation but looking to possibly add to the position if we retest that upper band of the previous consolidation.
Ideally not a fan of buying into resistance but it seems to have some momentum from below so, could have some legs and my original position is already well in profit.
Stocks Slump Even After CPIStocks have opened the week by continuing a steady decline. To an extent, this is to be expected, because September is typically a slow month in the stock market. However, the CPI miss yesterday should suggest that we are to see the Fed walk back statements about tapering, which should be good for our portfolios. Due to this, we expected more of a risk on day yesterday. But a series of downgrades sent us to lower prices. We are finding support at 4440, and there is a cluster of levels below, down to 4421. If we do catch a lift, there is a vacuum zone to 4487. The Kovach OBV is quite bearish, but may have bottomed out, suggesting that we might see some life in stocks this morning at open.
Malaise Setting In for Stocks??Stocks are finding support at 4462, after some volatility. It does look like we are stabilizing about this level for the moment, after making a run for support at 4440. September is usually a month of malaise for stocks, but we will see if we can get one more burst of risk on in beforehand. If so, we could test 4487 or 4504. The Kovach OBV is pretty bearish at this point, which may be a sign that we are oversold and due for a relief rally, even if it is just a brief respite. We still have a way to go before all time highs, and must cross 4521 and 4545 first.
Momentum Due for Stocks?? 📈Stocks tumbled Friday, taking us to lower levels of support. We have identified these in the last report and we have tested these levels to the tick. In particular, we saw support at 4487, before testing 4462 which appears to be holding for now, confirmed by a green triangle on the KRI. We are testing 4487 from below again, but will need momentum to pierce through it. We are anticipating another wave of risk on to come through stocks this week, so watch for the S&P to gain some traction and test higher levels including 4487, 4505 and 4521. We have a way to go before considering new all time highs, but 4564 is the next target after this.
Stocks Find Support!!Stocks have tested our lower levels, breaking through 4504 then finally bottoming out at 4487. Both were levels as to which we alerted you in this report. It appears that selloff we saw earlier this week may have found support at 4487. We have a double bottom at this level with two green triangles on the KRI. If we are wrong there is a vacuum zone to 4462. If we are right, then the next levels of resistance are 4521 and 4545. Our next target is 4564.
Stocks Finding Support??Stocks have been gradually trending downward since highs at 4545. We have broken through several levels of support including 4521, and 4504. We finally found support at 4487, to the tick. We've called out this level many times in the reports. This would have made a nice level to buy back at least for a quick scalping trade. Currently we are testing 4504 again from below but are facing resistance. The Kovach OBV is gradually tapering up. Watch for momentum at open, but we could see some bull momentum. The next target is 4521, then 4545. If bear momentum continues, watch the vacuum zone down to 4462.
CSI 300 - 2021 Q4 Outlook [1-3 months view] Trend Analysis Chart Patterns Wave Analysis csi300 china hongkong index Equity
Having completed the ABC corrective wave, CSI 300 started a new impulsive wave at the start of 2019. With price testing 1st support around the 4663.90 region where we also have a 50% Fibonacci retracement and possible wave 4 completion.
With the CSI 300 index holding above long term moving average and Stochastic indicator holding above support where price bounced strongly in the past, we see a strong case of price facing renewed bullish pressure. Price could very well push towards our 1st resistance at 5449.57 level and possibly even completing wave 5 target at our 2nd resistance level of 5930.90. Our 2nd resistance level is a key level as it is in line with the historical high of the index and also we have strong Fibonacci levels that finds confluence at that level.
Stocks Tumble, Find SupportStocks fell from from the range they were holding between 4521 and 4545. We anticipated a break out or break down as they had been holding this all last week. We caught some support at 4521 and made an attempt to establish value here, but another wave of selling took us to support at 4504. We should find support here but if we see another wave of selling, 4487 will be the next level down. The Kovach OBV has turned sharply bearish, reflecting the selloff. However we have two green triangles on the KRI suggesting that 4504 is likely to hold for now.
Can Stocks Sustain Highs??Stocks have been ranging between the 4521 and 4545. They have been ranging for over a week now. Observe the red triangles at the upper bound of the range from the KRI indicator, and the green triangles at the lower bound of the range. These mark perfect entry points for range trading. We are flirting with new highs, so it is highly likely that stocks will breakout, one way or the other. We will see if they have the momentum to sustain ranging at highs, or if they will retrace. If so, 4504 and 4487 will provide support. If we breakout, then 4564 is our next target.
VDJP Daily - Testing all time highs Beautiful follow through following the break of the bull flag. Currently testing all time highs, but move has been aggressive as seen by the extension from the 20day SMA and overbought RSI. It is currently the largest allocation in my portfolio and I will look to take some partial profits here hoping we get a slight pullback for an accumulation.
Stocks Ranging Before Nonfarm PayrollsStocks are maintaining a very narrow range between 4521 and highs at 4545. The Kovach OBV has leveled off, so we are likely going to range before jobs data is released on Friday. A good data point indicates a stronger economy, while a bad data point suggests more Fed fueled free money, so good or bad news is good for stocks. We will have support from below at 4504 and 4487. Our next profit target is 4564.
Stocks Cling to Highs!!Stocks are clinging to highs. We retraced slightly to 4521, but as we anticipated yesterday, this level, once a profit target has held, providing support. It will continue to do so, but a correction could take us back to 4505 or 4487. Our next profit target is 4564. The Kovach OBV is still strong, and if we see a particularly risk-on day at open, then we should easily be able to reach this target.
Stocks Make New Highs!!Stocks have broken through our profit target to make fresh highs again. Our previous profit target was 4521, which provided little resistance. Our next target is 4564. The Kovach OBV is tapering slightly, suggesting that momentum may be starting to wane. Additionally, we are starting to look a bit overbought. Knowing this product, we may have another rally in the tank before we can consider a retracement. If not, 4521 and 4504 will provide support.
Next Profit Target for Stocks??Stocks have blasted through our profit target at 4504 making new highs again. Our next profit target is fairly conservative, at 4521, or about 10 points higher than current levels. We should have some good momentum today, as Fed chair Powell's comments on Friday were received as surprisingly dovish. The Kovach OBV is very strong suggesting we may see momentum continue today. If not, watch for support at 4504 and 4487.
MTN Group Limited RSI indicators are showing exhaustion. The stock looks overbought and is facing strong resistance at R130.
As a trader, I wouldn't want to buy the top right now. I'm looking for a pullback to (+- R115) before I enter a position again.
There is no denying that MTN has been a top stock to own in 2021, and this uptrend should continue, but in the short term I'm expecting a 10% pullback and then a retest to current levels of R130. If it can break out of R130 then R150 is on the cards.
Pullback to R115 -( Ideal entry )
Retest of R130+ then some consolidation, then a breakout to test R150.
30% upside reward from R115 levels.
Not financial advice.
Will Stocks Make New Highs After Jackson Hole??Stocks dipped, finding support just above our level at 4462. We are currently testing 4487, which should provide resistance. The Kovach OBV is rounding off with the price action suggesting the overall momentum is petering out. Watch for news events from Jackson Hole to influence the price, and for stocks to remain in the value area between 4462 and 4487 until then. Our next target above is 4504 again, or highs. News from Jackson Hole could easily bring us to new highs again.
Stocks RangingStocks are broadly ranging in anticipation of more news from Jackson Hole. In an environment where the only really meaningful data point that matters is Central Bank forward guidance, stocks are waiting for a better idea. Watch for stocks to maintain this range until we have more insight or the market starts to price in a decision. It did appear that we got a burst of risk on mid trading session yesterday and we came within a few ticks of 4504. The Kovach OBV is pretty strong nevertheless.
Inflation TradeIn the chart below you have the TIP and IEF the IEF ratio. IEF is Ishares 7-10 year treasury bond ETF and TIP is the TIPs bond etf. On the right side of the chart you have the 10 year inflation breakeven. Now looking at the two you can see that they track pretty closely. Now generally the IEF 7-10 year has a very similar duration to that of the TIP etf.
Some people are wondering how to play the inflation hedge as with some of the largest tech stocks P/E multiple compression could pose an issue to high P/E ratio trading stocks. What does this mean, and what is multiple compression. Well what happens as inflation rises that inflation starts to be built into P/E multiples, and as that happens you start to get compression of those P/E multiples this can pose a massive risk to equity holders.
So my thesis would be you could short IEF, and be long TIP. This is something to look into, and I believe that spread that you can see below is going to widen tremendously. So it is something to watch out for, and a trade you might want to consider setting up.
TrendyTrades: DIDI Equity PlayHere's a decent equity play. Looking to get back to anchored VWAP at 11:50 for a PT.
Potential Breakout in FANG Towards 8800Trend Analysis
The main view of this trade idea is on the 4-Hour Chart. The index FANG (FNG1!) has been in a rangebound price movement after hitting resistance around the 7400 price level in mid February 2021. FANG held support at 6050 and made a second attempt to break above 7400 in mid July. After that failure the index quickly found some support around 6800 and is heading towards that 7400 resistance level. Expectations are for a break higher in FANG, with that target being 8800.
Technical Indicators
FANG is currently above its short (25-MA), medium (75-MA) and long (200-MA) fractal moving averages. The RSI is above 50 with the KST in a positive zone. Also over multiple other timeframes, the technical indicators are signaling a buy.
Recommendation
The recommendation will be to go long at market. Stop loss will be set around the 6000 price level and a target of 8800. This produces a risk-reward ratio of 1.36.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in FNG1!.
Stocks Make New Highs!! 🎉🥳Stocks saw a huge rally yesterday that brought all the major indexes to new highs. The S&P is no exception. We have cracked 4486 finding resistance just above this level, as confirmed by a red triangle on the KRI. The Kovach OBV was very strong but has rounded off suggesting that the asset is giving pause. We are perhaps due for a reasonable retracement, which may take us to support at 4462. If not, our next target is 4504.