Supply & Demand Trading Analysis 11/22/2020
With the strong bullish momentum dissipating, the signs of a reemergence of mass hysteria with wave 2 of covid arriving, numerous stocks a far distance away from major moving averages, big institutions adding more hedges to their portfolio's, these stories appear to ring the same tune prior to the crash in march. With a majority of stocks failing to reach new highs or inside supply zones, here are some stocks showing signs that a reversal to the downside is imminent.
MU
- A strong trend to the upside, however volume appears to diverge with price, a textbook bearish signal.
- Inside a major daily supply zone + strong rejection attempting to break above zone.
- Far distance away from 20ema on daily chart. Pullbacks resulted every time during similar prior occurrences.
- Entering a short position if price begins to break lower level of daily supply (59.44)
BIDU
- Price recently bounces of 200ema while inside a monthly demand zone.
- Price is showing consolidation, preparing for another strong move to either side.
- Looking to BTFD if price drops back to 200ema within the monthly demand zone.
MS
- A market top appears to have formed a market top on daily chart after failing to break above supply zones
- Will enter short position if price breaks below $57. Strong indication price is reversing.
- A triple top appears to have formed when analyzing weekly chart.
- A sharp rise in price with decreasing volume and far distance away from ema's = perfect pullback conditions
KSS
- Keeping an eye on how price moves this week as it appears to be forming a bull flag while attempting break above daily supply zone.
- If price moves in predicted pattern, will enter a short position as price enters circled zone. Black trendline is the top of monthly downtrend, expecting a rejection as price approaches.
PYPL
- Price in consolidation in middle of a 4 month trading range. With market conditions showing signs of a market ready to sell, I expect a breakout on the downside.
- Will look to BTFD if price breakouts out, entering demand zone along with 200ema inside zone resulting in high possibility price will use 200ema as support.
CNK
- Price rejects off 200ema after touching ema for the first time in 2020.
- If price begins to rise back into weekly supply zone AND with decreasing volume, will enter a short position in circled zone as it tests both a major supply zone and 200ema resistance.
MU
- A strong trend to the upside, however volume appears to diverge with price, a textbook bearish signal.
- Inside a major daily supply zone + strong rejection attempting to break above zone.
- Far distance away from 20ema on daily chart. Pullbacks resulted every time during similar prior occurrences.
- Entering a short position if price begins to break lower level of daily supply (59.44)
BIDU
- Price recently bounces of 200ema while inside a monthly demand zone.
- Price is showing consolidation, preparing for another strong move to either side.
- Looking to BTFD if price drops back to 200ema within the monthly demand zone.
MS
- A market top appears to have formed a market top on daily chart after failing to break above supply zones
- Will enter short position if price breaks below $57. Strong indication price is reversing.
- A triple top appears to have formed when analyzing weekly chart.
- A sharp rise in price with decreasing volume and far distance away from ema's = perfect pullback conditions
KSS
- Keeping an eye on how price moves this week as it appears to be forming a bull flag while attempting break above daily supply zone.
- If price moves in predicted pattern, will enter a short position as price enters circled zone. Black trendline is the top of monthly downtrend, expecting a rejection as price approaches.
PYPL
- Price in consolidation in middle of a 4 month trading range. With market conditions showing signs of a market ready to sell, I expect a breakout on the downside.
- Will look to BTFD if price breakouts out, entering demand zone along with 200ema inside zone resulting in high possibility price will use 200ema as support.
CNK
- Price rejects off 200ema after touching ema for the first time in 2020.
- If price begins to rise back into weekly supply zone AND with decreasing volume, will enter a short position in circled zone as it tests both a major supply zone and 200ema resistance.
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