If price never goes there then no action should be taken. The most recent breakout was in late April of this year when the stock gapped up after a positive earnings news and thus made a breakaway gap on its daily chart. Phil Elrod has been trading futures for more than 25 years. Again, just wanted to show this possibility to you. Maurizio Milano began his career as Forex Dealer in
So, as long as below I am bearish and expect a downside resolution of the prolonged sideways consolidation between and A move abv will turn the immediate focus the hourly chart bullish and that may be a sign fo a bigger move higher as the gold stocks GDX ETF would likely break higher with such a move as well. It would take a move abv 1. Posted in Education , forex , Stock Market.
While I am still bullish on U. Now, I am the last who will say that the U. If you are a long-term reader of my stuff, you know that I am a trend follower, i. I believe the best way to make money is to stay with the trend as long as it lasts.
Instead, it remains quite strong. At the same time, one of the wave counts that are possible here suggest a very bearish outcome. And I simply wanted to be sure that I have discussed this with you. As you know, I was looking ofr an Ending Diagonal in wave 5 from the October low. But I thought the maximum allowed for this pattern was so I abandoned this count a couple of months ago. Now, it seems to me that this count is still possible. And it is possible if wave v of 5 starts at the late May low instead of the April low.
Again, just wanted to show this possibility to you. You can decide if it makes sense to you or not. The point of invalidation is at — any move abv there will negate this pattern completely.
On the downside, a move below will strengthen this bearish idea and in this case we may see a relatively fast decline toward the origin of the Ending Diagonal formation near You can view this article, if you want to, again here:.
Now, what can we say at this moment? As I see it the basing pattern that I discussed with you almost an year ago, has played out well. As you can see, the stock has moved nicely. Even the negative earnings news caused only temporary setbacks. The most recent breakout was in late April of this year when the stock gapped up after a positive earnings news and thus made a breakaway gap on its daily chart. Now, the trend remains positive and thus one can favor the upside.
However, right now it is more difficult to find a low risk entry point in the stock unless you are a very short-term swing trader.
Based on your way of making investment decisions, you may decide to invest or not. But from a money management perspective, it is always better to get involved in stocks after they breakout, not after they are extended. Please, post your opinion below.
Posted in Stock Market. Gold has recently traded sideways for several months between and For the past couple of weeks it declined sharply but is still within that range. Back then gold traded sideways between and before it broke down in March and head sharply lower. Now, you can see these similarities by yourself on the chart above. But eventually I would expect a break down and a move twd Of course, we should also follow the market and act accordingly.
In that case I would turn bullish. Last month I discussed with you my concerns that the U. And the underpeformance of Nasdaq and the small-cap stocks were another warning signs.
But you know, the uptrend ends when it ends, i. And these moving averages should be declining or trading flat at least. So far we have not seen that. So, one should remain careful. On the other hand, it is the current trend that is the most important and it is up. So, one cannot justify the short side here under the approach that I follow on the stock market. And that means we should trade with the flow i. Bottom line, it is a bull market, but we cannot blindly stay bullish. And I personally will not attempt any shorts as long as the market stays abv this support area.
Posted on September 15, Leave a comment. Trade with the Trend! Posted on August 18, Leave a comment. Well, two things are missing, in my opinion. Her blog articles are at EllenBrown. Phil Elrod has been trading futures for more than 25 years.
He was academically trained in Industrial Engineering and Economics. After many years as a system analyst and designer he sought employment with Windows on Wallstreet, later acquired by TradeStation, to learn as much as possible about technical analysis and charting, before retiring from TradeStation several years ago.
Phil now operates Trading BetweenTheLines. Maurizio Milano began his career as Forex Dealer in He is also a journalist and his contributions can be found in the most renowned Italian financial newspapers and televisions.
He is member of SIAT the association of the Italian technical analysts , for which he gives lectures and sits in the Board of Directors. Alexander Nikolov has more than 15 years of experience in the field of technical analysis and is one of the most renowned technical analysts in Bulgaria. Alexander is a founder and chief editor Trend Recognition. He uses a proprietary approach for trend recognition together with the Neely wave labeling method. Alexander provides daily, weekly and monthly forecasts on the major currency pairs and the main U.
Surveys by Greenwich Associates and Euromoney, consisting of corporations and investment banks worldwide, ranked his Chart Service number one in and He is the President of Crosscurrents Investment Advisory. He is a veteran of the financial markets with 30 years of experience under his belt. He is a regular guest and commentator on financial television channels and publications. During his career, Darren has been fortunate to act for and advise some major hedge funds and investment banks.