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DJIA Dow Jones Industials - Beware the Head and Shoulders DJIA Dow Jones Industial Average Futures: DJIA1! This was a great short overnight on the break below 25257 line for a fall to the next line at 25094. It fell to this level exactly. Perfect, technically speaking. It should now make a rally attempt back as high as 25245-25257 range at best before it falls away again. This price action would also form a head and shoulders on this index with a 451 point downside target at 24643. Interestingly there is already fixed support waiting for it at the 24641 line. Look to short the counter rally and if this fails from lower than we ideally want it to will have to short on a break lower than 25080 with stops at least 30 above. *For fastest Updates on major markets in real-time through the Summer holidays please check link at top-left of main page. Be lucky !
OSE:DJIA1!Short
by sumastardon
1
SandP 500 Index Head and Shoulders Formation SandP 500 SPX500USD The head and shoulders formation mentioned in earlier posts has duly formed its right shoulder over the last 24 hours or so - it's higher than it should be for a perfect H&S but nevertheless it still looks quite powerful. It carries with it a minimum downside target at 7242 which is close to the fixed support line at 2740. It was a sell once the neck-line broke at 2797 back to the 2790 line for a quick scalp - sorry, was too busy with Bitcoin update to get an S&P update out quickly enough. Right now it's holding up from a low at 2789 but the counter-rally cannot be trusted. The mood is still febrile, animal spirits to the fore. Earning season makes for jumpiness, not helped by Trump's level playing-field mantra playing out across the airwaves. It's time to look for the next best opportunity from here... Ideally the S&P will rally further back towards the neck line at 2797-2800 range around the US open before falling away again to the downside target. And if we don't see the counter rally as above we need to be ready to short once the 2787 level is broken with stops above here by 4 points or so. We should get some action today. Get ready! *For updates to major markets in real time over the Summer hiatus please see link to Global Markets at top-left of main page. 31st July Update We also have Apple numbers after the close which should give some succour to the bulls today. It can therefore counter rally to 2809 and above to the parallel immediately above it at likely best before it comes off again. Eventually it should break the little dynamic underpinning the current counter rally and fall away to 2796 at least and more likely to the 2790 line where it should bounce again. A quick scalp at likely best. If so it will start to form a potential head and shoulders - perhaps waiting for Apple numbers - which may then go on to create the right shoulder. Still too sketchy right now to know that though. At any rate cannot trust the rally yet - at least until we see a restest and double bottom form at 2796. So far this looks like a dead cat bounce. Was hoping for better clarity here, looking for a better/bigger short from higher up. But Apple's figures may just upset that apple cart and muddy the waters even further. Looks like scalps at best again so far today : (
OANDA:SPX500USDShort
by sumastardon
2
The correction for the massive bull pump begins.It had to break down sooner or later a retracement was long overdue. I was able to exit at around 7670 or so which was more than close enough for me to our projected inverted head and shoulder breakout of 7.7k and basically sold the top. It's hard to say just how far we will dip on this next downturn but I'm confident we will only form a higher low in doing so and continue upward...however, in the meantime a short correction is due so hence why I marked this idea short. I see 2 outcomes for this downtrend. a straight drop. or potentially a head and shoulder pattern...If it ends up being a head and shoulder pattern I have drawn a trendline where the head should meet the neckline and projected a rough estimate of how the second shoulder might look. I may put a limit buy in right when the head completes at the neckline with a tight stop loss under it should it break the trendline and keep falling. Ultimately I think once we complete the next breakdown we will likely turn back towards the uptrend from there.
BITFINEX:BTCUSDShort
by DrDovetail
2
BTCUSD Massive Inverted H&S Just HappenedIts important to study what happened so we know what to look for in the future and we know where we are at now. You can see a near textbook Inverted H&S pattern with some slightly off characteristics but nothing is ever perfect. This at least tells us that we are at the beginning of a new cycle and we should be looking at coming price movements that have followed Inverted H&S movements in the past of BTC. Linked below you can see some of the patterns that formed while this was taking place so we know what to look for when this happens again.
BITFINEX:BTCUSDLong
by Silvertoe
BTC may be forming a cup and handle.Just my opinion, but with both the 4hr charts rsi and stochrsi well exhausted and well into the overbought zone and the 1 day chart's indicators now just reaching overbought conditions, I don't think we will be able to sustain an immediate breakout of the inverted head and shoulder pattern and a small correction is due to reset these indicator levels before a breakout can be sustained. at the same time we would like to see the price reach $6850 or so before any type of correction or retracement to establish a higher high on the 1 day chart and keep the ball in the bulls court. We can also see a very cup like price pattern has formed on this right shoulder. Also keep in mind that cme futures are set to expire on July 27th. All things considered my guess is that one of the 4hr candles that occur today will hit the $6850 region to complete the rimline of this cup pattern and then for the next 10 days or so we will see it form a handle until those futures expire at which point we will break above the cups rimline, the neckline of the inverse head and shoulder and the symmetrical triangle pattern we are in. Perhaps it will be Q3 which is the bullish one this year.
BITFINEX:BTCUSD
by DrDovetail
1
Sending bullwicks above the inverted head and shoulders necklineLooking at the 1 day chart we see a very promising sign here that the higher low/higher high bull pattern might continue. We need the price action to climb to 6850 or so to form a new higher high on the 1 day chart before the next significant breakdown happens. If so odds are food the following down trend will only form a higher low on the 1 day chart which will continue to allow the bulls to control the momentum. I already exited my position at 6690 and will be setting a stop buy up around 6894 to be safe. I think once we achieve the higher high on the 1 day chart a correction will be overdue and we will likely dip. I'm thinking we won't dip under 6.1k though before the next uptrend and will confirm a higher low at that point. All just my opinion though I could easily be wrong. As always not financial advice. Thanks for reading and best of luck!
BITFINEX:BTCUSD
by DrDovetail
2
Big Surge in Bull Volume Takes Us Back Up Towards the NecklineA much needed bullish volume surge breaks price action back up above the 4hr 200 and 50MAs and sends us back up towards the neckline of the inverted head and shoulder pattern. People are attributing it to the rumor that Blackrock is considering getting into crypto ETFs. Botht he 4hr stochrsi and rsi are super extended in the overbought zones..so I think our most likely scenarios here now are either consolidate through a bull flag pattern for a bit to bring those indicator levels back down or potentially form a bart and dip back down a little bit to cool off the indicator levels. I still feel confident we will break above the inverted head and shoulder neckline eventually but probably not until after the futures expire on the 27th. This bullish break came at a crucial time too as the 4hr 50 and 200mas were wanting to create a death cross and this break should hopefully keep any death cross brief and send it right back into a golden cross. Although I am long term bullish, all factors considered here leaves this idea in the neutral zone.
BITFINEX:BTCUSD
by DrDovetail
7
Inverted Head & Shoulders on 1 Day Chart Still Very Much In PlayWe got very close to the original projected price target of the lavender wedges projected breakdown, but jut broke upward from the latest bear flag just before the new day candle started. What's a very encouraging sign is that we dropped to almost the exact same height as the left shoulder of this inverted head and shoulder pattern...always good for the validity of a h&s pattern when the shoulders are that symmetrical...not a necessity but usually when its that picturesque it gives the pattern much greater probability of playing out. For the price to turn around at that exact height increases my expectations of the inverted head and shoulder pattern triggering after all...so wise to keep a close eye on that. You'll recall in my laat idea titled two outcomes...one of the outcomes I saw was the price turning back upward to continue the right shoulder...the other outcome was that we would bounce off the bottom trendline of the pink symmetrical triangle we are in...that outcome is still in play too, and in fact both could happen...reaching the bottom trendline and bouncing up off it would not invalidate the inv h&s pattern....however it's much more encouraging pattern if it stays to the upside now based on the symmetry of everything. Wise to still be prepared for both outcomes though. I'm leaning more towards it going up from here but will keep this idea listed neutral since both outcomes are still in play. I also projected it reaching the neckline of the inv head and shoulder pattern around the 28th just because I'm fundamentally factoring in when the Futures contracts are set to expire on the 27th. Considering how that's still 15 days away that still gives us plenty of time to have another dip again before reaching the neckline so be prepared.
BITFINEX:BTCUSD
by DrDovetail