S&P continues to rise impulsively with small corrections along the way. A minor pull back towards 1623 was not enough to scare bulls last Friday. continued to support the trend and bears for once again were not strong enough to break below support levels. Trend remains up, with our wallets saying long, but our brain short. In the chart below we show the important short term and intermediate term support levels to look for.
In a previous post, we mentioned the bullish pattern of a cup with handle that has now extended as it was supposed to, and we think it is time to look for a short term correction with first target the 1600-05 area. The recent decline from 1635.01 to 1623.71 does not look . This increases the chances of a new high towards 1640. Long positions would better be covered if Friday’s low is taken out. Prices below that level could enable a short term correction towards 1600. Nevertheless, even if this happens would need to show more evidence for an intermediate term trend change.
DOW also remains in a bullish trend and everyone’s question is how long will this last. Dow has made a 3 wave decline from 15144, which increases the chances that this decline was corrective and a new high should be expected this week. As shown in the chart below, 15030 should be respected if broken. A break below that level could start a bigger downward correction towards 14700.
Trend remains up and it seems that the pattern of small dips that will be met with more buyers will continue. Real time updates for TRADING2DAY subscribers will inform of any change to pattern or trend and will act accordingly to take advantage of any opportunity to make a profitable trade. Last week I was away on vacation due to Greek orthodox Easter holidays. Although I planned to refrain from trading, markets gave such great opportunities. In only one week, my trades gave me 4200$ profit, trading 1k margin positions with cfds. If you want to follow our exclusive for members twitter account and receive our newsletters, don’t hesitate and contact me at email@example.com and ask for 1 week free trial. Try us!!
A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.
The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.
Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.
A term used to describe a trader (bear) who is expects that a particular asset – be it a commodity, currency or product – to fall in value. The opposite of a ‘bull’.
The idea is that bears attack by getting up on their hind legs and striking their opponents down with their paws, symbolising the fact that they are sellers driving prices down.
Beliefs held by the aforementioned ‘bears’ of the trading world, are described as bearish. Characterised by a generally pessimistic outlook on the state of a given asset, a bearish outlook would suggest that a fall in value is imminent. Opposite of bullish.