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Overextended

SPY Upper Channel overextendedIf you draw a trend line on top of the price candlesticks, you get the upper level of the channel, which seems to be overextended. This has not meant a strong reversal necessarily, but more of a consolidation period. Interesting to note: - the 50sma has been an important level for some time - the lower Bollinger Band has also acted as a potential support As the 50sma and the lower BB get close, they may act as multiple support, for a potential buy the dip scenario. (look at the drawn green circles) Seasonality wise, April is one of the strongest months, only after November. May isn't too bad, as it has closed higher than it opened, 68% of the time for the past 20 years; June however, is one of the worst months for the past 20 years (just after January), with a positive outcome 58% for the past 20 years. If you would like to check seasonality for any symbol, let me know and I will be happy to assist. Hope everyone has a great weekend.
AMEX:SPY
by dorfmanmaster
RUNEUSD Short Reasons to sell Overextension of the RSI on the 4hr Bearish DIV on 1hr and 2hr Last time we saw a move like this was 04 Nov 2020 with a 20% correction happening Strong resistance at $6 Head and shoulders still intact (but subject to change as we are in a bull run and this is a bearish pattern) low success rate in bull runs Could see price revisit $4.80 Reasons to buy Very strong bullish daily candle with a breakout of the descending channel Doji at support level on 25th March Good news came out in regards to ASGARDEX/Multichain going live soon
FTX:RUNEPERPShort
by Kai-FX
GBP/CHF MONTLY BEARISH PATTERN!!!In the monthly we have a price that is over extended. The price is currently rejecting a supply area. As well we have a over extended W formation, so we can expect the price to complete the pattern with a rejection to the w previous leg. if we take fibonacci from low to high we can see that the fibonacci .618 level is align perfectly with estructure. We just have to make sure that the M,W and D time Frames are in the same direction before taking any action.
Short
0
by Wiiso
2
S&P 500 - Megaphone complete, now sellUpdate to our long term S&P analysis. Check the link below: Hello traders and analysts, Here is update to our weekly outlook provided April 24th and July 22 judging by the closeness of our results so far - we are pretty much on track to our prediction. We are already short on this and will hold our sells in conjunctions with longs and close out longs as price hits highs. Do not over leverage and apply risk management if you use our analysis for your own benefit. Technicals: 1. Looking back to 2000, 2008 - the dotcom, financial banking crisis and now 'Covid' - we can see a nice megaphone pattern which has emerged looking back since February 2018. We have completed the the downward impulse of the wave pattern 1-5, with all waves forming without breaking the structure. we are now in the minor wave 2 structure. and next up is the 5 wave corrective structure and looking to complete wave on the trendline . 2. From an imbalance method, we have a good double top retest which is showing profit and greed taking helped on from the Fed and using Fibonacci extension - price can over shoot to create an upper supply zone . Price has seen a bounce back to 'normal priced of demand' however this is not really how halted economies can return so fast. it is artificial. Divergence - we did not use this but looking at the pattern, we have a huge distinguishing gap. However this keeps widening - whilst we do not look at the divergence indicator, it does show a good area for sells - and according to RSI - we are not there yet technically speaking 80 zone is a major sell. 3. Looking at the VIX - the dollar is weakening to a 90-91 lows - however the buying of this at the lows will produce huge rewards. Check out or Vix for long inverse 4. Looking at Russell and SPY has the gap to fill to $340.00 per share , is this sustainable growth which is being propped up - with earnings quarter now in play, we will see those numbers finally provide profit targets either severely missed or the few will beat earnings . Fundamentals: US election rallies before taking place at the end of the year with campaigning - enter volatility state We have NFP numbers showing millions return to work.. but also high unemployment still looming. Trade war with China, Hong Kong unfolding with US responding - constantly.. High figures in multiple states which are concerns for large communities- record numbers still being released Fiscal intervention in July, August for stimulus.. constant printing money is not good for the economy. US tech stocks have seen the highest returns and zero confirmation by Dow30 and S&P following suit. - will this last? no.. billionaires just adding wealth, SME businesses not receiving the correct funding at all.. Dow 30 is in a fragile state and desperate to keep pushing higher but limited upside will cause a steep decline - refer to Dow chart.. around 28,500 is a good point for a previous monthly high but it may fall over at 28000 tops. - this is now being challenged Crippling 1trillion money printing exercise to be released to prop up false growth. enter sovereign debt crisis Why follow us? Updates on our pairs as and when we can. Swing trade out looks 10 years combined experience in capital markets simple breakdowns for beginners to advanced . KISS - keep it simple stupid. we trade purely from naked charts, less indicators - remove the noise. If you like our work, please leave a like or comment. To all our followers, we appreciate the follow and likes. Thanks, Team Lupa
OANDA:SPX500USDShort
by LupaCapital
BANKNIFTY Weekly Review Banknifty Monthy - Banking Index held its previous month low and also surpassed the previous month high and I am hoping it be closing above the previous month high tomorrow, and if it does and it is going to be a very good monthly closing, indicating likely continuance of the recent up move. Banknifty Weekly - On Weekly, it formed a Big Bull Candle closed near it high, such types of candles as good support, hence for this uptrend to continue, the index should hold and trade above this candle low i.e 22410. Banknifty Daily - On Daily, you can see, from many trading sessions, it has been forming candles with higher highs and higher lows, and Friday candle is a big bull candle closed near it high, Such Big candles when formed after a good move, often indicates the prices are overextended and it might rest for a while or retrace some part of it. There is also a crab pattern formed on the daily chart suggesting a resistance around 24560-24660. Price action near crab resistance is usually wild, by wild, I means you can see spikes, large movements in the prices in any direction. So if the market opens flat or gaps up tomorrow, it might also test 25150 on the upside or the support levels mentioned above. Conclusion: Trend is up on all time frames, it's a buy on dips on the market because it is always better to trade in the direction of the trend. Currently, the prices look extended on the daily chart and any dip would likely be absorbed quickly. Immediate support is around 23590 and 22980 levels Disclaimer: Being a trend trader, I won't be trading any index tomorrow, will wait for it to get settled.
NSE:BANKNIFTY
by manuagarwal21
3
QTUM- On fire! Now or wait for the pullbackPropelled by the news of offline staking, mainnet and potential DeFi project, QTUM is on the hot steak lately. One of the two famous smart contract platform projects, along with NEO, from China back in 2017. It is trading below its long-term S/R lvl and is about 96% from its ATH (Check my links below for other coins that are down over 90% from their ATH- SNT & NANO). On the daily time frame, it seems very over-extended so pullback may be imminent. I would not mind hopping onto the bandwagon now with small order because next resistance lvl is still 20% away and add onto the position on the pullback.
Long
by Libratus
8
XAG USD new potential demand zone at 61.8%Hello traders and analysts, Despite the huge sell off today - which has been anticipated as the price hit a great supply and completed a great W formation - Bears took over to retrace to our 61.8% zone [but not there yet to get buys in. Prefer confirmation as this sell off was very impulsive. Why are we going long still? Well if the price is showing us - this 25$ zone is a great opportunity if price closes above if not, this zone is invalid. But price on the higher timeframe has retraced to a demand imbalance and orders will be picked up - so from here we are expecting price to range between the 25-29zone. now the zones are established. See our previous trades . We have closed one trade previous and still have the original running from 14.88$. Enjoy looking through our previous trades to follow the journey to now. Why follow us? Updates on our pairs as and when we can. Swing trade out looks 10 years combined experience in capital markets simple breakdowns for beginners to advanced . KISS - keep it simple stupid. we trade purely from naked charts, less indicators - remove the noise. If you like our work, please leave a like or comment. To all our followers, we appreciate the follow and likes. Thanks, Team Lupa
FOREXCOM:XAGUSDLong
by LupaCapital
4
Wayfair: Chart Overextended and Price way beyond FundamentalsYou can see that selling on the upper red line has rewarded shorts in the past and I believe that this is a great short opportunity here - one of the best i have ever seen. We have got way over extended and fundamentally the price is just way too high for a this company, even with the 'shopping online' narrative that has been done to death. Overstock is the much better company in reality. Margins are just too small for furniture and you only have to read Wayfair reviews on the likes of Trustpilot to realise how poor their products are. I think we should at the very least see a retrace back to the 250 levels here.
NYSE:WShort
by TheZenDegen
$SAM Boston Beer Company: Over-Extended & Priced For Perfection$SAM Boston Beer Company: Over-Extended & Priced For Perfection Looking back long term whenever this stock gets 30-40% above it's 200d ema line its usually time for some kind of correction. At its highest peaks it was over 40% above. Right now its over 45% above it with earnings approaching next week. People aren't socializing as much or congregating in big groups. Bars which had opened are now being forced to close. Even if they hit their EPS target for the quarter. The story for the near term will not be positive. This stock is over-bloated and ripe for shorting. Near Term Target: $575.00 If $575 support is broken we could easily see the $525-$550 range. Note: Not investment advice.
NYSE:SAMShort
by Triple_Barrel_Capital
7
[DEFX] DeFi Breaking Bearish - Time for a retraceDecentralized Finance, the hot new projects making 5-10x in a matter of weeks. Will these 1000% gains be held over summer? It's only a matter of time before DeFI comes back to Earth, regardless of whether it will continue to be adopted by the crypto community. Exepct this DeFi Index to drop hard if Bitcoin breaks below key support levels. This will be top of the list of high risk markets to be dumped if the overall crypto market is to take a fall. Market value is now below the MA Ribbon and cloud on the Daily, RSI is close to bearish, and it's a long way back down to the 100 & 200 MAs, as well as the lower levels of fib retracement 0.236 - 0381. With parabolic moves come sharp corrections. It could take a while, but this market needs to cool down already. That said, if Bitcoin continues to consolidate for more weeks/months, expect higher levels of speculation.
DShort
by dragononcrypto
ALL GREEN!! Great Boost For The Weekend! - 06/19/20 RECAPHi traders, What a wonderful end of a week! I am all green, costing myself some part of that +6% had I let all the trades run to their full targets, but then again, SPY was already overextended and I didn't want to push my luck anymore. I am also copying my trades to the TV demo live so there is even more transparency for you guys to see! Trades: 1) CLF - SHORT @5.79, +1.22% 2) SLB - SHORT @20.53, +1.72% 3) BA - SHORT @192.01, +1.46% *In my ID trades, I risk 1% of the account per trade and go for 2% (2:1 RRR ). Sometimes I adapt a little bit as you can see in the trades' description.* Total PnL for the day: +4.40% Total PnL for the week: +1.42% Good trades, Tom | FINEIGHT
AMEX:SPY
by Fineight
4