• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

Tentative Breakouts Fail To Hang On

By Kurt Osterberg · On April 15, 2018

Markets had started Friday above the marked consolidations I had drawn on the charts but subsequently ended the week still inside these trading ranges. As a two-day pattern, Friday’s close finished as a bearish engulfing pattern across markets which means I’ll be looking for a break of newly drawn ascending support (of the last 8 days) in these indices.

The S&P still has a MACD and On-Balance-Volume trigger ‘buy’ signals but Friday’s high (and the high of the bearish engulfing pattern) was the 50-day MA. Sidelined bulls will want to see a convincing break of the 50-day MA, and probably the downward channel before committing. Bears have the easier play – helped by the strong relative underperformance of the index against its peers. Short the loss of Friday’s low with a stop above 2,680.
 

The Nasdaq is in a similar position to the S&P; Friday’s reversal came away from converged 20-day and 50-day MAs with a similar technical picture. The same short play opportunity is on offer: sell loss of 7,708 with a stop above 7,185.
 

The Russell 2000 actually managed to clear its consolidation, its 20-day and 50-day MAs. Unlike other indices, there was no drop back inside the consolidation. In addition, relative performance continued to improve. All this suggests a bullish outlook but I have also drawn in a possible ‘bearish wedge’ too.
 

As for other indices, the Dow Jones Index reversed from channel resistance in what is a good shorting opportunity. Risk is measured on a break above 24,650 with a target of the lower channel.
 

For Monday, look for a break of Friday’s lows. A weak open will present a shorting opportunity which could last a few days – if not a few weeks. Decisive moves above 20-day/50-day MAs on volume will negate the short play.

 

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

  • Finance

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

  • Finance

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

No Comments

Leave a reply Cancel reply

Top Finance

  • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
  • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
  • Hedge Funds In The US Hedge Funds In The US
  • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

New Posts

  • STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    June 20, 2022
  • NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    June 20, 2022
  • 5 NFTs Trending on Twitter Going Cheap to Invest in Now

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

    June 20, 2022
  • Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    June 20, 2022
  • Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    June 20, 2022
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018-2021 NJCEE. All Rights Reserved.