Nov 022014
 
Near-term uptrend for EWJ with resiatance at 12.25

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Near-term uptrend for EWJ. Bullish white candlestick for the week with a shaven head and shaven bottom. Will test major resistance of 12.25.

iShares MSCI Japan ETF

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“It is all about probabilities”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2014 TradeOnline.ca

Dec 112013
 
High probability TSX Index will test support of 12,900
Tall shaven head and bottom candlestick does not bode well for the TSX Index.  High probability the index will test major support of 12,900.

TSX Index 7 Month Daily Candlestick Chart courtesy of StockCharts.com

Technical analysis is all about evaluating probabilities. There are no sure things when you evaluate a chart: just guideposts. In the near-term, the above chart indicates a high probability that the TSX Index will test support of 12,900. And there is a low probability that the index will break resistance of 13,500.

Here are the negative points from the above chart:

  1. Tall shaven head and bottom candlestick on the chart today
  2. The 10-Day SMA crossed below the 20-Day SMA
  3. The volume was average today but volume does not have to confirm a downtrend
  4. RSI is confirming the downtrend
  5. Notice the divergence when RSI did not confirm the November high

Reference the last chart analysis for the TSX Index showing the performance by sectors.

Reference the last chart analysis for copper which has a major impact on the materials sector.

Reference the breakout for the TSX above resistance on October 18, 2013. This is now the support zone on the above chart. The reversal of roles is an important concept in technical analysis.

Reference the importance of the 12,900 support zone which was a a area of consolidation back to early 2012.

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca

Jan 022013
 
Bullish shaven head candlestick — first trading day of 2013
Bullish shaven head candlestick for the DJIA on the first trading day of 2013.

DJIA 6-Month Candlestick Chart

The tall bullish shaven head and shaven bottom candlestick is a graphical representation of the euphoria after a deal on the so-called fiscal cliff. It was excellent follow through for the bullish engulfing pattern of December 31. The market teetered at major support on December 27 and 28 when a deal was less than certain.

Technical analysis is all about assessing probabilities and there is a high probability that the Dow will test major resistance of 13,600. But there is a a lot of froth in this market as represented by the VIX and it can turn on a dime. The VIX has fallen 35.4 percent over the past two sessions, the biggest 2-day percentage drop in the history of the index. The next big news event is the employment report this Friday.

I would like to see the 10-Year U.S. Treasury close convincingly above 1.900% as confirmation that the Dow and S&P500 would have a chance to continue the near-term uptrend.

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Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

© 2013 TradeOnline.ca

Sep 062012
 
Bullish shaven head candlestick closes above resistance
Bullish shaven head candlestick closes above resistance on the daily chart.

S&P 500 Index YTD Daily Chart

Reference the last chart analysis for the S&P 500 Index published on August 24, 2012.

Some points to ponder from the above chart:

  • Tall bullish shaven head candlestick closes above resistance.
  • Now must hold above the resistance zone.
  • The resistance zone will be the new support zone — reversal of roles concept.
  • Volume must increase to sustain the intermediate uptrend.
  • OBV is not confirming the uptrend: this is a concern.
  • RSI is confirming the intermediate uptrend.
  • If the index holds above 1,425 then the intermediate target is 1,530.

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Note: This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

© 2012 TradeOnline.ca

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