Dow Jones, US30 ShortsTechnically, price has shown signs of weakness and I'm looking to short at the return to the 1H oderblock for a good ride to the downside, attacking sellside liquidity
Stockindexsignals
(FR40) Index to hit 4600 EUR Pretty SoonFirst off, please don't take anything I say seriously or as financial advice. As always, this is on opinion based basis and not meant to be taken seriously. That being said, let me get into my opinion. FR40 which is a French stock index for the Euronext Paris, have been hit pretty significantly as a result of Covid19 after being on a bullish recovery for almost a year prior. Now, as the markets are weighting in and people are starting to "panic sell less", I believe it is about to pass the 4600 euro threshold and likely to go on a stable price recovery trend. The 4600 EUR threshold crossing is likely within a week or so at most, but the recovery process is more of a long afterwards.
DOW JONES Signs of the Great Depression?This is a DJI comparison of the Great Depression and the phase that preceded it against the current COVID sell-off and the phase since the DotCom bubble that led to it.
** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
As you see both time phases are Megaphone patterns. Both started on high volatility (A,B,C,D) while the Megaphone was emerging and after testing the Higher High trend line for the longest time of the phase (E), the price broke above it making an over-extension (F). This is usually where most retail and other dumb money are trapped during recessions. What followed (F) during the Great Depression was of course a complete and lengthy collapse of the system, the worst recession in history. Also look how harmonically the 1M MA100 is moving on both patterns.
Will history repeat itself? I want to know your opinion about it.
*For the record the purpose of this comparison is not to spread panic, I will leave it to the mainstream media to do so. But it is so intriguing that I think can make a great discussion in the comment section below! So will it fill the gap?
S&P500 Buy SignalPattern: Channel Up on 1W.
Signal: Bullish as the index is close to the Higher Low zone (green triangle) of the pattern. The 1D RSI is also on the multi-month Support Zone.
Target: 3390 (just below the 1D Resistance)
DAX Trading plan for next weekPattern: Rising Wedge on 1D.
Signal: Bearish if the next opening is below the 4H MA50. Otherwise the signal is invalid.
Target: 13360 (right above the 4H MA200).
DAX Buy SignalPattern: Channel Up on 1D.
Signal: Bullish as the index touched the MA50.
Target: 12,600 and 12,800 (if it touches the lower Higher Low support).
SPX Sell SignalPattern: Channel Down on 4H.
Signal: Bearish as long as the previous Lower High doesn't break.
Target: 2820.
