Trading United Steel (X) using Multiple Time Frames

Dear Readers, United Steel looks like the next big cap stock to make a huge move. All the 'stars and planets' (multiple time frames) are now in line for a huge move as the weekly traders stepped into gear. Let's take a look at the multiple time frames.

United Steel (X) Weekly

United Steel (X) Daily Chart - Looking at the market sentiment, what are the odds of X breaking higher above its 50day MA? Very high chance.

United Steel (X) 60-min Chart - Price action resting after breaking out of its 60-min trading range over a period of 3 weeks. A powerful move is imminent. A breakout buy!

United Steel (X) 15-min Chart - Lastly, if you are trading a smaller time frame such as the 15-min chart and your chart is showing you an enormous gain; hold on to your stock. Reason: A higher time frame trader might be coming in to push the prices even higher. Just look at all the above higher time frames which I have posted above and you'll understand.

 

Trade them well ! Have a great weekend.

BAC (Ascending triangle looks to move soon - 60min chart)

The 60 min chart of BAC looked poised to break to the upside with an ascending triangle formation. Meanwhile the daily chart is consolidating side ways as the coiled spring effect could make its move soon. The chart could also be interpreted as a H&S pattern if it breaks the trend line.

Change in trend - strong case for bulls (S&P500 weekly chart)

The obvious fact is that we are seeing the S&P500 index holding its long term support of 1139pts successfully 3 weeks back on the weekly chart

Moving down to the daily chart, we are seeing a change in character, or rather change in trend when the S&P500 broke out of its trading range, signaling that the Aug/Sep bottom would hold.

Adding to the strong case for the bulls, the Baltic Dry Index widely considered as the purest form of economic indicator, is already on the move, breaking out of its trading range back in Aug/Sep.

The Baltic Dry Index provides an assessment of the price of moving the major raw materials by sea and is known to be one of the purest form of economic indicator in the sense that only member companies who have actual cargo/ships are allowed to trade in this index with no speculative players involved at all.

Wyckoff Method of Technical Analysis - BAC (Oct 2011)

Dear Readers, I was looking for signs of accumulation for the stock of Bank of Amercia (BAC) and decided to apply Richard Wyckoff's method of techinical analysis to the chart pattern of BAC.

BAC could possibly be at the stage where it is preparing to make the jump across the 'creek' a.k.a major resistance OR a failure to make the jump could see it coming down to the $6 or even $5-plus region for a retest of the support.

I came to know of Wyckoff's method of technical analysis when I came across "The Three Skills of Top Trading" by Hank Pruden whereby the Wyckoff schematics of accumulation and distribution were covered extensively by the author. Fantastic read! This book is a must read !

Abbreviations used:

Selling Climax (SC): the point at which widening spread and selling pressure (high volume) usually climaxes and panicky selling by public is absorbed by professional interest at prices near bottom.

Automatic Rally (AR): Relief rally where short-covering can easily cost prices to shoot up

Secondary Test (ST): A retest of the area of selling climax to test the supply and demand at these levels. For a bottom to be found, volume and price spread should be significantly diminished as market approaches
support.

Spring: Also known as a shakeout.

Sign of Strength (SOS): Advance on high volume and price spread

Last Point of Support (LPS): The ending point of a reaction or pullback where support was met, also known as a retest of support where long position can be initiated or to add to profitable ones.


Have a good weekend!

Market Going Sideways - Ready for Bullish Breakout Or Not

S&P 500 is now just below its Ichimoku Clouds. The mere fact that it has not bounce off the resistance and moved lower is perhaps good news for the bulls. The index is now just hugging below the resistance line and if it breaks out of the Cloud, look for it to hit at least the 200 day MA at 1275pts. There are also some positive indication from the Ichimoku Cloud trading overlay that are of favorable to the bulls. If the market favor the bulls, we could see some upside next week.

S&P500

Bank of America

Market updates for week ending 14 Oct 2011

S&P500 rallied and closed just at its major resistance on Friday. We could be seeing a slight pullback for the next few days to 'retest' the resistance-turned-support for S&P500 at the 1185 area. If we could hold the 1185 level, the market could turn bullish into the weeks ahead.

S&P500 Daily Chart

S&P500 Weekly Chart

MGM

BAC

Possible Change in Trend

What a week it was! The major indices broke out of their descending triangle and went on a tremendous breathtaking rally before facing a near term resistance. Somehow, the trend looked like it is changing slowly from bearish to bullish. Stocks looks to be bottoming especially with a Right Angled Broadening formation spotted on the DJ Transportation Average. We'll have to be patient and wait for the breakout higher before placing any long bets. Nonetheless, the higher time frame bullish players are already moving in as the weekly charts of stocks are looking to form bullish reversals.

S&P500

Dow Jones Transportation Average

Bank of Ameria

Goldman Sachs

Capitulation... It Is Not

What looked like capitulation of the stock market on Tuesday 4 Oct 2011 might not be one after all. On Tuesday, stock prices reversed their intraday loss to finish green on extreme high volume. However, it might all comes to nothing when prices of bank stocks were stopped at their near term resistance on Friday.

We could be seeing lower prices to come. If you are a long only investor, you would be better of in a cash position.

BAC

JPM

S&P500 - Trapped in a descending triangle pattern. Bearish

S&P 500 Market Update for 30 Sep 2011

S&P500 closed almost at the end of its trading range of 2 months on Friday, 30 Sep 2011. A break of 1120 support will spell bad news for the bulls. Will it break? We'll know on coming Monday, which happens to be the start of the 4th quarter.