Inside out, upside down, backwards, forwards . . . Even when candlestick patterns go topsy-turvy, they have something to say about the state of the market. The Three Inside Up candlestick pattern is a reversal signal composed of a Bullish Harami pattern and a confirming third candle. To better understand this pattern (to turn it right-side out, you might say), scroll down to learn about its formation and meaning.
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Rick’s Featured Trade Ideas
Today’s featured trade idea and my personal trade plan
TWTR/Long |RBB| J-Hook| 4-day Engulf
SPY: T-Line™ Chart Down | Price deep into resistance
Good Morning, Profit Traders,
$205.00 and $206.00 were both tagged briefly by two 30-minute bars. From there, the Bulls were able to find another $.90. On the 30-minute chart, the SPY is getting close to our high deuces which I’ll be discussing in the trading room today and the importance of where they are on the chart. A successful close over the high deuces would be a smooth move for the Bulls. Failure could produce a shorting opportunity. Today I see a little support on the SPY at $205.85 and a little resistance starting at $207.95.
The US dollar index (DXYO) has pulled back to support and is flagging. The question here is: Will support help push it through the 200-period moving average, or will the 200-period moving average be more than it can handle?
Overall, the market has been damaged and will take quality construction to put the market back in contention with the highs. It’s important to understand how bottoms are formed, how support needs to be tested and resistance needs to be broken down. There’s a big difference between a reversal and a relief rally. At this time, I only see a relief rally being attempted.
All the best to your trading success!
Rick | Hit and Run Candlestick Team
Trading knowledge ignites successful stock trading.
Rick’s Featured Trade Ideas
Today’s featured trade idea and my personal trade plan
BPT/Long |RBB| Bullish Engulf | Breakout
SPY: T-Line™ Chart: A close is needed over $203.35
Good Morning, Profit Traders,
The oversold relief rally continues according to the morning futures. Yesterday, the two numbers we posted, $202.15 and $203.35, were spot on. The morning futures fueling the relief rally puts a nice round number of $205.00 in the crosshairs for resistance followed by $206.00.
The transports remain in horrible shape with price of the weekly chart still under the 200- period moving average.
The US dollar index (DXYO) closed yesterday at $96.09, the 200-period moving average has held off the last three attempts to push through, and $95.50 is acting as support.
Overall, the market has been damaged and will take quality construction to put the market back in contention with the highs. It’s important to understand how bottoms are formed, how support needs to be tested and resistance needs to be broken down. There’s a big difference between a reversal and a relief rally. At this time, I only see a relief rally being attempted.
All the best to your trading success!
Rick | Hit and Run Candlestick Team
Trading knowledge ignites successful stock trading.
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Rick’s Featured Trade Ideas
Today’s featured trade idea and my personal trade plan
S/Long |T-Line™ PBO| Higher Highs and Higher Lows
SPY: T-Line™ Chart: A close in needed over $202.20
Good Morning, Profit Traders,
Europe is trying to bounce back but volatility remains, and today we start the relief rally phase. The SPY is set up to open higher kicking off the relief rally from a very bruised and oversold market. It’s not the open or the midday that will be the most important hour of the day; it’s the close. The question is: Will we close over $200.20, the first resistance at yesterday’s close? Today, will it act as support after the morning positive relief? $202.15 and $203.35 will be important resistance numbers that the relief rally will have to deal with.
There should be some pretty decent trades today, but I don’t believe this relief rally will continue without constructing a bottom formation.
The $199.00 area clearly acted as support yesterday as noted in our June 27 morning note.
All the best to your trading success!
Rick | Hit and Run Candlestick Team
Trading knowledge ignites successful stock trading.
