Chaikin Analytics Power Users
  • About Chaikin Analytics
  • Trading Meeting Videos
  • Subscribe to Chaikin
  • Market Conditions

December 23rd, 2018

12/23/2018

0 Comments

 
Wanted to share a pretty reliable price pattern with you.   It's called a head and shoulders top and, especially when viewed across longer time frames such as weekly bars, it tends to confirm a trend reversal -- in this case the rally that began in November 2016.  
Picture
For those trading in the Chaikin Analytics 3 to 6 month time frame sweet spot, I'd caution against aggressively loading up on too many Very Bullish positions if we experience a sharp reversal. After the initial break through the neckline, price throws back and retests old support which then acts as new resistance.  We could make it all the way back to 2600 before rolling back over and down, or the bear market rally could be shallow..perhaps up to 2530 (February lows).  The way price is acting now, we could hit our downside price target without ever retesting broken support.  This is one of those black swan market periods we get about 1% of the time.   A head and shoulders is a TREND REVERSAL pattern, which means the stock market could make a series of lower highs and lower lows for an extended period.  Until price gets above 2600, I'm bearish.  Until price breaks above 2800, I'm no better than neutral.   -- Mike
0 Comments



Leave a Reply.

    14 Day Free Trial
    Learn to Trade With Market Scholars
    Oversold Buy Test Results
    Options Trading Results

    Archives

    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016

    RSS Feed

Proudly powered by Weebly