Simple short - VFC Corp - Long term head and shouldersVFC is a corp that not only is showing a wonderful long-term topping pattern. It's also positioned in a rather poor manner for the current macro environment. They are a cyclical company that sources the majority of their products from Asia, experiencing significant supply issues that are constricting margins significantly.
Not sure if this breaks immediately, based purely on probability, it will likely confuse people and trade sideways around the neckline for a while. But if market conditions continue, it may just break straight through and potentially retest significantly later.
Cyclicals
Blackrock at key supportAs you can see, the price has respected the 200sma (blue) since the break from Covid lows.
Risk-reward-ratio presented is interesting as you will figure out if you are right or wrong pretty quickly; especially since the Bollinger bands have been contracting as we have consolidated.
Trade setup:
Target around $1000 for profit-exit.
Loss-protection exit 1-2% under the 200sma.
Fundamental Analysis '
- The $TNX (interest rates) has broken out which is positive for financial institutions.
- There is a cyclical tilt to the market as high valuation companies in the technology sector are hit hard.
* Note: Earnings are starting at the end of next week for the financial sector.
US30 Hourly Pulls Back to SupportThe US30, FXCM’s DJI CFD, is in the bullish area on the daily chart on the left. We note that the hourly has pulled back to support (green shaded area). If price bounces from here, a bullish cross of EMAs and stochastic potentially align short-term traders with the daily. If signals occur, movement of stochastic to 80 level, and maintenance of that level, increases the chance of a successful trade. Trend following indicators may be useful in this case as a potential exit tool. Stop under hourly support in conjunction with risk management techniques. Please note if holding overnight, rollover charges may apply .