Monthly Archives: May 2014

Dow Jones Industrial Average chart

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Will there be a breakout or a double top?
Dow Jones Industrial Average chart and a major test at the May high of 16735

Dow Jones Industrial Average Daily Chart

The major trend, intermediate trend and near-term trend are all up. On Balance Volume (OBV) is confirming the uptrend. And the DOW is trading above the 50-day and 200-day simple moving averages.

The Dow Jones Industrial Index is testing a major resistance point.

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“Always trade in the direction of the major trend”

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.

U.S. Treasury 10 Year Note Yield Chart

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Intermediate downtreand for U.S. Treasury Note
U.S. Treasury 10 Year Note Yield Chart will test major support of 2.40%.

U.S. Treasury 10 Year Note Yield Chart

The main points from the above chart for the U.S. Treasury 10 Year Note Yield are the the intermediate downtrend and major support at 2.40%.

Reference the last post for the U.S. Treasury.

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“Keep it Simple”

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.

Russell 2000 Small Cap Index chart

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Russell 2000 10% correction and support around 1100 to 1080
Russell 2000 Index weekly chart showing the 10% correction in relation to the moving averages.

Russell 2000 Small Cap Index Weekly Chart

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And the view from the daily chart
Russell 2000 Index 10% correction and the support level.

Russell 2000 Small Cap Index Daily Chart

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“Keep it Simple”

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.

Dow Jones Industrial Average candlestick chart

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DOW could not hold the Monday breakout
Dow Jones Industrial Average could not hold above the breakout level.

Dow Jones Industrial Index Daily Chart courtesy of StockCharts.com

Reference my post on Monday when the Dow Jones Industrial Index broke above major resistance to an all-time high.  At that time, I penciled in the new support level of 16,600. The important point from the above chart is that the breakout failed to hold and this was a significant breakout. The 16,600 level is back again to the resistance point and support is around the 50-day simple moving average of 16,400. Caution is advised as the near-term uptrend is over and taking some money off the table maybe prudent at this point. But, and there is always a but, the major uptrend is still in effect for the Dow as approximated by the 200-day simple moving average.

Dow Jones Industrial Average

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“Keep it Simple”

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.

US Dollar Index weekly chart

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Major support for the US dollar is the $79.00 zone
Major support for the US Dollar Index is the $79.00 zone.

US Dollar Index Weekly Chart courtesy of stockcharts.com

The US dollar is the reserve currency and has a major impact on other markets. The inverse relationship to the price of commodities is relevant to the Canadian market. Commodities are priced in US dollars so commodity traders demand more US dollars as it declines relevant to other currencies.

United States dollar

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“Keep it Simple”

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.

Dow Jones Industrial Average bar chart

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All-time closing high and new support level for the DOW
Chart for the Dow Jones Industrial Average showing the all-time high and the new support level.

DJIA 1-Year Bar Chart

I have penciled in the the new support level of 16,600 for the Dow. This was the previous resistance level and the reversal of roles is an important concept in technical analysis. But always use time and percentage filters to confirm the breakout. On a time basis, if the Dow can hold above 16,600 for two days we have a new support level.

It was a strong day for the Dow in terms of the price action: closed near the high of the day.

On a volume basis, the volume was relatively low on the breakout. This could raise concerns because volume is the fuel that will drive the advance in an index or stock. But volume is not necessary to confirm a downtrend. A stock can fall with it own weight and relatively small volume.

I have concerns with the momentum indicators that I will elaborate on in another post.

As you can see, there is no sure thing in technical analysis. Just assigned probabilities.

Enjoy your trading day. If you don’t enjoy your avocation or vocation, then it is not worth doing.

Reference the last chart analysis for the Dow.

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“Keep it Simple”

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.

WTIC and Brent weekly chart

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What are the main points from this chart?

Chart of WTIC and Brent and the correlation coefficient.

Brent Crude

West Texas Intermediate

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“Keep it Simple”

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.

Canadian Energy Sector versus U.S. Sector (2007-2014)

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Canadian energy sector back on track

Canadian energy sector performance compared to U.S. energy sector performance.

This chart is simply the absolute performance of XEG ETF compared to the absolute performance of XLE ETF.

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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.

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