NASDAQ:AAPL needs to have a great earnings report on August 1st but it has a topping formation at the moment, after huge speculation from promoting something that is not yet proven to increase sales. You can't take hope to the bank. Speculation occurred as investors assumed that AI would sell more new iPhones in droves. This earnings report will reveal reality...
UNDERLYING PRINCIPLE: Divergence between Futures/Stocks/ETFs and their Relative Strength Index (RSI) can be used to predict a bottom or a top. This method is more useful in determining a reversal in overall market than an individual stock. To elaborate the principle let's assume the market is making higher highs but corresponding RSI is making lower highs....
Negative divergence seen on #cnxenergy on Daily timeframe, we would be looking at a crack of minimum 1800-2000 points here. Traders can look for week energy stocks and short them. Traders should stop out once the index trades and sustains above 33800!
NYSE:CVX was the Dow 30 component that had the highest loss on Friday. The chart clearly shows that the earnings report was not going to be good. The pattern is a failed bottom as there has been rotation to lower inventories of the stock for most of this year. Declining Accum/Distribution indicators at the lows of the range followed by a negative divergence...
It appears to be $60 correction for Gold is in the horizon. There is good chance to retest the $1830 level before making it's next move!
Powerful negative divergence on the weekly time frame ( a very reliable time frame in terms of divergences) suggest that the USDJPY will likely change its multi-week trend and likely turn down or move sideways. There is other confluence that would support this hypothesis, and a caveat here, though I am not an 'Elliottician' ( Elliott wavers) I use the patterns...
On the 1hr we find good ole negative divergence. Not yet for the markets. New low? Cant say. This is not a buy here.
My mistake was to omit looking at Oil from the top down. This led me to accurately spot a bullish move with divergence and as they are reliable it moved in my favour but the longer outlook is now turning bearish. Here the daily suggests that Oil will not move higher for now. And that a solid short lasting several days, and perhaps even a few weeks is likely. ...
Negative divergence on the Nasdaq suggest this will move down for now. This for now is a short term trade.
AUDUSD negative divergence suggests a sell signal in the daily time frame. This implies that the AUDUSD will move downward for the near term future. We can not be sure what the long term outlook will be for the AUD or the NZD nor the CAD as they tend to all move in tandem. For now we have evidence that these three currencies will move downward to sideways. ...
Here is an idea of what may happen. This is not a prediction but more of a tutorial in what to look for in the daily time frame of negative divergence. Of course this could be wrong and the bulls buy this to ATHs (all time highs) but I suspect the markets will sell off eventually. And this chart will prepare you to look for evidence that the markets will turn...
Negative divergence in the 4h time frame indicates a sell in the short term. Though I am not an Elliotician I see an ABC pattern as a correction to the downtrend I have been charting since December. The ADX you can see did not support the upside by turning upward and cycling over 20. This suggests the bullish move was weak and is likely over and we will turn...
Oil shows a significant amount of negative divergence on the 1hr time frame. Caution here. This might be the sell off.
1. Ascending Broadening Wedge 2. Bearish Butterfly 3. Negative RSI Divergence
Sell CADJPY after it appeared negative divergence CADJPY TYPE : SELL TF : H2 ENTRY PRICE : 92.30 STOP LOSS : 93.05 (75 PIPS) TAKE PROFIT : TP1: 92.10 TP2: 91.70 TP3: 91.05 TP4: 90.50 TP5: 90.00
Sell USDJPY now it appeared Negative divergence USDJPY TYPE : SELL TF : H2 ENTRY PRICE : 113.85 STOP LOSS : 114.75 (90 PIPS) TAKE PROFIT : TP1: 113.65 TP2: 113.25 TP3: 112.50 TP4: 112.00 TP5: 111.15
MSFT - bearish too tired + RSI Negative Divergence