A bullish cup & handle / double bottom projection will be completed upon price breakup of the 93.2 region.
Cup & handle projected target in the 97 region, coinciding with VPVR resistance zone (shaded red).
Happy trading!
We observe an interesting scenario in the S&P500 and in fact many indices (minus the NASDAQ) around the world with a bearish cross on the long moving averages coupled with a bullish cross on the short moving averages. MACD is flat after the huge run from the March bottom, suggesting a consolidation for a big move.
We also observe the OBV to be flat suggesting...
$GLD is attempting a bull flag breakout with volume after confirming an inverted SHS formation - investors continue to hedge in safe haven assets.
We are bullish biased while we wait for opportunities in the equity markets.
Continue to reiterate stock picking of fundamentally strong stocks around a "lockdown" theme (e.g. e-commerce & tech).
EnsoAM
We observe technical weakness in EURO STOXX with a SHS breakdown and significant volume.
We are short term bearish but are looking to buy indices on retracement.
Reiterate stand of relative outperformance by stock picking in this moment with fundamentally good stocks around a "lockdown" theme (i.e. e-commerce, tech).
EnsoAM
A price bottom may have arrived for oil and oil stocks ($XLE).
Chart displayed a bullish divergence of the MACD and has traded with some strength on the rebound.
A potential cup and handle reversal pattern is forming and will be validated if price can trade above the gap resistance with considerable volume.
We are currently neutral on oil.
The DJIA has completed a bearish wedge pattern and has broken below it. The confluence of the bearish wedge and horizontal resistance at ~24000 could potentially form a small SHS pattern. A break below 23000 with volume will confirm the retracement.
We reiterate our stance on stock picking of fundamentally strong stocks with a lockdown theme at the moment.
We...
An in-depth comparison in relative strength of various US sectors from peak to trough, complementary to previous post.
It appears that investors have repositioned in recent recovery with a "lockdown" theme, weighting heavier in their investments with healthcare ($XLV), fundamentally strong tech ($XLK) (e.g. $AMZN) and consumer staples ($XLP) (e.g. $WMT).
We are...
Judging from relative outperforming in the bounce for the NASDAQ to the DJIA and S&P, it appears that investors are repositioned in fundamentally strong tech stocks such as AMZN while remaining hedged in safe haven assets such as T-notes.
Moving forward, the market will likely continue to reward stock picks of fundamentally strong tech stocks with "lockdown"...
Confluence of horizontal and bearish wedge resistance, coupled with diminishing volume and MACD divergence.
We opine that the market has priced in stimulus and COVID recovery data and will be focusing on economic fundamentals.
We will look to buy only on retracements. Exercise due diligence!
