Market Scenario and Potential Buying OpportunitiesAnalysis of Key Support Levels and Candlestick Pattern Confirmation
The financial markets are often characterised by their volatility and the constant ebb and flow of prices. In this intricate dance, key support levels play a pivotal role in determining the direction of market movements. This aims to provide an in-depth analysis of the current market scenario, focusing on two significant support levels, $2,378.36 and $2,327.67, and the potential buying opportunities that arise should the market break and close below these levels. Additionally, the importance of candlestick pattern confirmation at the $2,035.97 level for a Bullish Deep Crab Pattern setup will be emphasised.
Understanding Support Levels
Support levels are price points on a chart where a security tends to find buying interest as it falls. These levels often act as a floor by preventing the price from being pushed downward. Identifying such levels is crucial for traders, as they help in making informed decisions about entry and exit points in the market.
In the current market scenario, the two significant support levels to watch are $2,378.36 and $2,327.67. These levels have historically shown strong buying interest and have acted as a base for price rebounds. However, should the market break and close below these critical levels, it signals a potential shift in market sentiment.
Significance of the $2,378.36 Support Level
The $2,378.36 level has been a key area of support in the recent trading history. A break below this level would suggest a weakening of the bullish sentiment, prompting traders to reassess their positions. It is essential to observe the market behaviour around this level closely.
Importance of the $2,327.67 Support Level
The $2,327.67 support level is another crucial price point. Historically, this level has provided a strong base for price recoveries.
A break below this level would likely indicate a further decline in market confidence, leading to increased selling pressure.
Waiting for Candlestick Pattern Confirmation
In the event that the market breaks and closes below the two significant support levels, attention should then be directed to the $2,035.97 level.
At this juncture, it is crucial to wait for a candlestick pattern confirmation.
Candlestick patterns are graphical representations of price movements for a given period.
They are widely used by traders to predict future price movements based on past patterns. In this scenario, a candlestick pattern confirmation is required to validate a potential buying opportunity.
Potential Buying Opportunities at $2,035.97
The $2,035.97 level is significant for the Bullish Deep Crab Pattern setup. This advanced harmonic pattern is known for its precision in predicting price reversals. The Bullish Deep Crab Pattern consists of four distinct price movements that create a specific geometric pattern, indicating a potential reversal point.
For a reliable trade entry, it is essential to wait for a candlestick pattern to confirm the validity of this setup. This confirmation ensures that the market is indeed reversing and increases the probability of a successful trade.
The Bullish Deep Crab Pattern
The Bullish Deep Crab Pattern is a harmonic pattern identified by its precise Fibonacci ratios. The structure of the pattern includes:
Confirmation Candlestick Patterns
Several candlestick patterns can serve as confirmation for the Bullish Deep Crab Pattern.
These patterns provide visual cues to traders, signalling a potential shift in market sentiment. Waiting for these confirmations ensures that traders enter the market with a higher degree of confidence.
Conclusion
In summary, the market's behaviour around the significant support levels of $2,378.36 and $2,327.67 is crucial for determining future price movements. Should the market break and close below these levels, the $2,035.97 level becomes the focal point for potential buying opportunities. However, waiting for a candlestick pattern confirmation is essential to validate the Bullish Deep Crab Pattern setup.
By adhering to these technical analysis principles, traders can make informed decisions, minimizing risk and maximizing potential returns. The importance of patience and confirmation cannot be overstated in achieving successful trading outcomes in a volatile market environment.
Deep Crab
EURUSD Analysis: Support & Resistance TradingKey Levels (1-hourly chart):
- Resistance: 1.0669
- Support: 1.0630
Additional Setup (4-hourly chart): Bullish Deep Crab & ABCD Patterns at 1.0522
Analysis:
- Approach: Identifies potential shorting and buying opportunities based on support & resistance levels
- Key Levels: Highlights resistance at 1.0669 and support at 1.0630 on the 1-hourly chart
- Alternative Setup: Considers a more favorable buying opportunity at the convergence of Bullish Deep Crab & ABCD patterns at 1.0522 on the 4-hourly chart
Trade Plan:
- Shorting Opportunity (1-hourly chart): Consider shorting at 1.0669 or buying at 1.0630
- Preferred Buying Opportunity (4-hourly chart): Look for a convergence of Bullish Deep Crab & ABCD patterns at 1.0522
- Risk Management: Implement effective risk management techniques to protect trades
Insights:
EURUSD presents trading opportunities at key support and resistance levels on the 1-hourly chart. Additionally, a more compelling buying opportunity may arise at the convergence of Bullish Deep Crab & ABCD patterns on the 4-hourly chart. Ensure prudent risk management practices are in place to manage potential market volatility.
📉📈 Exercise caution and prioritize risk management when trading EURUSD based on support & resistance levels!
EURUSD Analysis: Shorting Opportunities Await- Trade Bias: Bearish
- Key Factors: Interest rate differentials favor USD over EUR
- Trade Plan: Looking for shorting opportunities
Analysis:
- Importance: Emphasizes interest rate expectations influencing currency movements
Trade Plan:
- Shorting Opportunity: Waiting for shorting setups
- Potential Entry: Bullish Deep Crab Pattern completion at 1.0520
Insights:
EURUSD remains bearish due to interest rate expectations. Shorting opportunities are favored until there's a clear indication of ECB's stance on interest rates.
📉 Keep an eye out for shorting setups and remain cautious in trading EURUSD!
AXA: Bearish -DEEP CRAB detected.AXA: Lower-DEEP CRAB detected.
(1)
In Weekly:
A DEEP CRAB -Bearish was detected on AXA and was confirmed. Following this bearish harmonic pattern, a new BEARISH trend can potentially begin.
(2)
ROC and RSI: Note the Bearish divergence building up like dark clouds announcing a potential reversal on the horizon.
(3)
Detection of a SELL signal using ROC and RSI indicators;
Following this, I expect the market to move down to the 33.63 level, then 30.55, and finally towards the 29.49 and 25.84 levels, depending on the 50 and 200 EMAs.
How will AEP react to it's results on Feb 27th? We are taking a short position on AEP before it's results.
1) There is a nice deep crab pattern on H4
2) The H4 is overbought
3) There is a double top
4) Divergence is present
This is a purely technical view and we expect the news to be bearish for AEP.
Stop loss above 84.50
Target 73.
GOOGLE: Bearish - DEEP CRAB "on the Menu": Wolf Alert.GOOGLE: Bearish - DEEP CRAB "on the Menu": Wolf Alert.
GOOGLE results coming out tomorrow
However according to my technical analysis, the action should fall back to the white rectangle zone, towards 146, according to ICHIMOKU and the "Kijun"
+ slight divergence on R.O.C
Monitor GAPs as they can be potential targets, stick the EMA.50 and EMA.200
DAX (M15): Bearish -DEEP CRAB detectedDAX (M15): Bearish -DEEP CRAB detected
The price could reach 17 145 according to Fibonacci retracements, before falling to 16 875, then 16 690
American PMIs could influence this movement
Monitor the 50 and 200 Exponential Moving Averages
A BUY put strategy on MARCH or JUNE is possible
stay careful
AUDJPY: BAMM Breakout Headed for a 50% RetraceI suspect as the Japanese Carry trade is pressured, that there will be an effort made by institutions to convert to AUD in anticipation of Australian Interest Rates potentially rising above US Interest Rates, this would revive the more traditional Australian Carry Trade and serve to reduce the downwards pressure put on the Japanese carry trade while also reducing their overall leverage and should allow them to prolong the Bull Market in equities at least until the spring. Meantime the conversion to AUD should Temporarily push the value of the AUD up higher and given how much leverage would be going from JPY to AUD, I'd suspect the rise we see in AUD to be a bit on the extreme side which could lead to us very quickly seeing AUDJPY reach the more macro Fibonacci retraces between 139 JPY to 191.567 JPY.
Will the S&P finally turn at 4850? The bullish run of the S&P is really hard to believe. From the low of 4100, it has posted a return of close to 20% over the last 3 months.
The market will always have correction, so we need to understand what is the best place to take a counter trend.
There is a big pattern to sell at the current price, but the stop loss needs to be above 5000.
The risk to reward is really good aiming for 4290.
Let's hope the pattern holds and the market will correct for more buying opportunity.
SPG: Bearish Harami at Resistance and Bearish Deep Gartley PCZSimon Property Group has formed a Bearish Harami on the weekly at the PCZ of a Bearish Deep Gartley and Bearish Deep Crab, the PCZs happen to align with weekly Horizontal Resistance and may now lead to SPG making its way down to a 0.886 Retrace as the REITs continue down due to rising yields.
BTC 12HR etc High Time Frame Bearish Deep Crab and BATI've been looking at this pattern for a while now, waiting to see if price would get to this point. It has. There is a Bearish Deep Crab and Bat on High time frames on BTC. Oscillators in conjunction with these patterns are a sign of a reversal soon. With the Fed meetings next week, this seems all too well timed. Be prepared. Thank you for viewing.
MCOM: 3 Line Strike at PCZ of Bullish Deep CrabThe RSI is peaking above the oversold zone after confirming a Bullish engulfing and very nearly confirming a 3 Line Strike at the PCZ of a Bullish Deep Crab.
I do not normally enter stocks like this, but seeing how cheap this stock is and how the market cap is only $5 Million, yet the annual revenue is more than half of that, along with the fact that there is a bit of a technical argument for a gap fill from these levels, I decided it was worth taking a small chance on this stock to see if it can gain some major upside.
Google: Bearish Deep Crab Dark Cloud Cover Type 2 Return EntryGoogle, after its initial bearish reaction to the PCZ, has returned to the PCZ as the RSI managed to make a 3rd lower high and is set up to give us an impulsive move downwards in the coming days. We also confirmed a textbook Dark Cloud Cover today after the rejection of the ascending trend line.
I think we will see extreme downside from Google pretty soon that will undo most, if not all of its 2023 upside price action.
Exploring Shorting OpportunitiesUSDJPY is currently on a Bullish Trend, but I am keeping an eye out for a shorting opportunity.
After analyzing the weekly chart, I have identified a bearish bat pattern that could potentially be a good opportunity to short the market. We just need to wait for a candlestick confirmation and for the market to close at 146.96 to seal the deal.
Alternatively, there are also bearish crab patterns on both the 4-hourly chart at 150.43 and the 1-hourly chart at 149.81 that could be worth considering, depending on how aggressive we want to be with this trade.
It's worth noting that this trade is a bit tricky, as we may need to be patient and persistent in poking the bear until it starts to give us the bear run we're looking for. If we're too quick to shift stops to entry, we may get stop out a few times, but that doesn't necessarily mean losses for the trade.
Overall, I believe we have a good plan in place and I'm excited to see how this trade plays out. Let me know if you have any questions or concerns.
BB: Is at the PCZ of a Bullish Gartley and a Bullish Deep CrabBlackBerry is attempting a spring-and-back-test-of-spring at the bottom of the range that it's been trading within since 2012, and the level happens to align with the PCZ of a huge Bullish Deep on the left, to which it has reacted once before, and on its way to testing the zone a second time and back testing the spring. It's also formed a smaller, more localized Bullish Deep Gartley with some hidden Bullish Divergence on the MACD. If it manages to get back above $5 and stay above $5 in the active session, we would then have room to see it pump all the way up to $24.89 really fast as that is the next major level above and near the 200-Month SMA, but if things really want to get serious, we could see BB complete a Full Measured move of this range which would take it all the way up to the 50% retrace up at around $45.39