Price Action, Chart Pattern, Trend, Support
Price Action, Chart Pattern, Trend, Support, and Resistance are playing nice. The close of yesterday the six most important chart indicators are working together.
Price action is making higher lows and higher highs, we have come out of a Bullish “W” pattern, currently working on a cup. A Bullish J-Hook is setting up, and I see a possible Doji continuation pattern. The T-Line is trending; price is above support with one resistance hurdle. Bar any bad news the SPY should follow the path of the QQQs.
FREE Trade Idea – LABD
LABD printed a Bullish Engulf followed by positive Bullish follow. Yesterday price closed over the 34 and 50 moving averages creating our Rounded Bottom Breakout. Possible Bullish “W” pattern may come clear.
Charts To Study – PBI
PBI has run 17.41% after we informed our members that it was ready to produce on April 27, 2017.
Members Swing Trade Ideas
We post to HRC members 10-15 swing trade ideas each day and post them in the member’s area of the website.
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10-15 trade ideas below – for members only
What is a Trade Idea Watch List?
A trade idea watch list is a list of stocks that we feel will move in our desired direction over a swing trader’s time frame. That time could be one to 30 days for example.
From that watchlist, we wait until price action meets our conditions for a trade.
Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is not financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service
Campbell or this website is not financial or trading advice. All information is intended for Educational Purposes Only.
Friday’s afternoon rally left price action clues of bullishness.
Clues of bullishness were left behind on Friday but let’s not forget resistance may still have something to say. As much as I would like to see a bullish breakout, I also have to recognize that both the SPY and DIA still have need fight through new high resistance. It is very importance we put aside the bias of what we want to happen and be willing to see clues of reversal as we test resistance. Believe me, I want to see the market breakout, but that is a bias that can be very dangerous. As we test resistance levels, I must remain objective and focused on the price action. Like it or not, isn’t this exactly where a failure could occur? Stay sharp, focused and flexible!
On the Calendar
We kick-off the new week with a newly elected French President at the helm. At least, for now, the market seems to support Macron removing a little uncertainty. We have 2 Fed speakers before the market opens, but after that, the Economic Calendar has nothing else of note. On the Earnings Calendar, the market faces another big week of reports. Today there are more 260 companies reporting so remain vigilant in your preparation for new and existing positions.
Action Plan
I must admit to being a little disappointed seeing the futures point to a lower open this morning. With the end of the day bullishness on Friday and the French election, not ruffling feathers I was expecting more bullishness. As normal I looked through a lot of charts this weekend. Although one can clearly see a tentativeness in the broad market, there are a substantial number of bullish charts with good signals. If the overall market begins to display a little follow through strength, I will be looking for new positions today.
Anytime we are at or near new highs it’s easy to make the mistake of becoming complacent. Always keep in mind that a failure at resistance is possible. It’s very important to remain watchful for clues of reversal when testing new highs. Head fakes and whipsaw price action are always possible at resistance. Equally important is avoid predicting and simply follow price action. Currently, my read of the price action of the overall market as bullish but I know it can pivot in about half a heartbeat. If we simply follow price rather than thinking, we can predict it; we will naturally be more flexible if a change occurs.
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Trade Wisely,
Doug
Bulls Broke Out of the Eight-Day Channel
The Bulls broke out of the eight-day channel Friday closing the SPY at $240.20. Above the T-Line and the upper T-Line Band. It’s starting to look like the Bulls just might pop the top and make a break for it. The March 1, highs is the next challenge followed by $242.55 then $245.50.
A close below $237.70, just slightly below the Lower T-Line Band and the volatility stop would suggest the Bear is a bit larger than the Bull.
FREE Trade Idea – INAP
INAP broke out of an eleven-day channel with a Bullish Morning Star. The T-Line has dipped below the 34-EMA and now popped back up with price closing back above the Upper T-Line Band.
Charts To Study – MTOR
One January 1, 2017 we posted to our members that MTOR had a high probability of moving higher. MTOR reached a new high after breaking out then pulled back to the 34-EMA. Price then put together a Bullish Morning Star that ran the T-Line for 48 days!
Members Swing Trade Ideas
We post to HRC members 10-15 swing trade ideas each day and post them in the member’s area of the website.
Subscribed members
10-15 trade ideas below – Members Login
What is a Trade Idea Watch List?
A trade idea watch list is a list of stocks that we feel will move in our desired direction over a swing trader’s time frame. That time could be one to 30 days for example.
From that watchlist, we wait until price action meets our conditions for a trade.
Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is not financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service
Campbell or this website is not financial or trading advice. All information is intended for Educational Purposes Only.
Price Action continues to consolidate in a very tight range.
Overall the price action of the market remains fenced into a very small range. I think most would like to see that north gate open which will put a lot of pressure on the Employment number to perform well. However, the south gate is under pressure from uncertainty as well as falling oil prices. The longer the Bulls and Bears are confined, pressure will continue to increase making a big move possible. One thing is for sure; I will carefully watch both fence lines, prepared to react if one gives way. Now is not a time to be blinded by bias.
On the Calendar
Today we get one the most watched number on the street, the Government Employment Situation Report. The March number was a disappointing 98k but the consensus expectation today is 185k. Although this number seems to be very inconsistent, it remains on the best gauges on the overall health of the economy. After all, if jobs are growing, then business must be growing, and consumers must be happy and confident enough to part with their money. The Employment Situation number comes out at 8:30 AM Eastern so any reaction to the number will be before the open.
Beginning at 11:30 we have a string of Fed speakers including Chairman Yellen at 1:30. If they happen to utter something that the market is not expecting plan on a market reaction. There are just over 100 companies reporting today. I either looked at the Earnings Calendar wrong, or they made some changes because next week is now another big of reports. Ugg!
Action Plan
Yesterday I spoke bullishly about the overall market, but the sell-off in oil left us stuck with more choppy price action. Currently, I am still bullish holding several profitable long positions however if oil continues to slide south it obviously keeps the Bulls penned up. The Employment Situation number could be the deciding factor today. Friday is profit day, and I am planning to put some money in the bank.
[button_2 color=”orange” align=”center” href=”https://hitandruncandlesticks.sharefile.com/d-sa2b7315c9274e0ca”]Morning Market Prep Video[/button_2]
Trade wisely,
Doug
Same Old Tight Channel It’s Been In The Past Eight Day
Yesterday was a great day for swing traders, just a boring day for the market. The SPY stayed in the same old tight channel it’s been in the past eight days. The T-Line has caught up with price and price did close over the upper T-Line band. The DIA’s and the QQQ’s also closed over the upper band. The IWM was not a player and closed below the lower band. My eyes will be on the SPY and price to see how it reacts to the job numbers today.
FREE Trade Idea – None Today
Fridays are a good to take a few profits and close out a few dogs. And to reflect on your trading. What went right and what didn’t, and why. Friday’s are also a good day focus more on education rather than trading. – Just Saying
Charts To Study – WUBA
WUBA- Has run 35% after we recommend it for your watch list. Not only could it have been bought and held using our Volatility Stop indicator, but also the T-Line Bands and it was a Rounded Bottom Breakout!!!!
Members Swing Trade Ideas
We post to HRC members 10-15 swing trade ideas each day and post them in the member’s area of the website.
Subscribed members
10-15 trade ideas below – for members only
What is a Trade Idea Watch List?
A trade idea watch list is a list of stocks that we feel will move in our desired direction over a swing trader’s time frame. That time could be one to 30 days for example.
From that watch-list, we wait until price action meets our conditions for a trade.
Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is not financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service
Campbell or this website is not financial or trading advice. All information is intended for Educational Purposes Only.
