Bitcoin Short Term Outlook as of Sep 14, 2018

Many readers are asking for short term analysis on Bitcoin.

Here is the continuous Bitcoin future daily chart.

image

Context

1. Bitcoin experienced the classic 75% crash from its all time high near 20,000.

2. Since the spike low back in February it has tried hard to settle down but just like any other market, post crash price actions are usually more bearish.

3. The down channel (blue parallel lines) like price action was terminated with channel mid reversal (blue arrow) and false breakout against first quarter low.

4. Breakout of the channel was meant with a strong selloff back down to retest the channel top and the first quarter low (green arrow).

Short Term Outlook

a. A clean breakout above the resistance trend line (green line) will likely give a run to target around 10,000.

b. IF, BTC manages to stay above 2nd quarter high after #a happened, it will in turn create the potential of what is often called Adam and Eve bottom. Whether the pattern will work out is too early to even think about it since the breakout part has not even happened.

It is not that difficult to read a chart properly. Understanding how to engage the market correctly will keep your trading risk under control while the profits will take care of themselves as always. Get my book and learn my system of chart reading.

What We Know About Amazon as of Sep 7, 2018

Here is a weekly chart of Amazon.

image

Making measured moves in Amazon is part of its habit all the time.

It is right on time to enter its correction / consolidation phase until the election is over.

The key support areas are highlighted in the chart.

If you want to be able to analyze your charts with better precision, pickup my book today!

Forecast: Where is QQQ Heading as of Aug 29, 2018?

Let’s guess when and where QQQ and Emini Nasdaq 100 will end this rally.

The chart below is just an update of what I posted last week.

image

Everything lined up now for a showdown between bulls and bears right above.

Looks like it is going to get this done by either the end of this week or beginning of next.

From there it is more likely than not that we will have a month long consolidation / pullback.

Nice Catch Update: QQQ as of Aug 24th 2018

This is a follow-up on my post back on the 21st. This is the same 30-minute chart as of today.

image

Notice how QQQ (and Emini NQ too) holding up at the up trendline (green line) as support even though there was an external sell shock forced the price to move lower.

And now we have tagged the target (orange zone).

This example is a classic case that you hear all these bearish opinions publicized by the media, yet the markets are doing what they are supposed to do. Then the media (and TV personalities) blame the market for moving higher. Instead of telling the truth that they do not know what they are talking about, they make up more excuses to confuse the public.

Don’t let them.

You do not need fancy technical indicators or complicated analysis to trade profitably.

Learn to read price charts correctly today!

Nice Catch: QQQ as of Aug 20th 2018

I was talking about Nasdaq 100 (QQQ and NQ) is ready for gap and go to much higher price level in my real-time commentary.

Here are some of the reasons directly from the chart.

image

On 30-min QQQ chart:

1. Down channel established as of Aug 13th (blue lines)

2. Intention to produce 3 pushes down (red lines)

3. Bounce from 3rd push materialized but blocked from going higher by the gap and forced to go lower when price re-entered the channel (red down arrow)

4. Up trendline established as of Aug 15th

5. Retest of swing low from Aug 15th also aligned with test of down channel.

6. On Aug 20th closed above channel, as long as price stays above the channel, or a bull flag on higher timeframe, will give us the last swing high (orange zone)

Many people assumed they know how to read a chart properly. Instead of accepting their ignorance, they choose to believe they already know everything in my book, The Art of Chart Reading.

Maybe, they have a collection of ideas how to read a chart. But that is not how it works. Chart reading has to be done systematically so that you can arrive at the proper conclusion with no bias from your personal opinions. And what I offer in the book is the framework to achieve exactly that.

What We Know About Tesla as of Aug 18, 2018

Here is a daily chart of Tesla.

image

1. Channel (blue lines) in the making since the late 2016 rally. Confirmed by mid 2017 test of channel top and subsequent consolidation.

2. Violent down trendline (red line, left) break gave us the target (red down arrow).

3. 2nd down trendline (red line, right) break gave us test of all time high and rejected. Potential trendline breakout failure.

4. Channel support (orange zone) down at 260 to 280.

5. Interestingly, Tesla is still in daily uptrend.

Struggle around the 2nd down trendline likely until clean setup of a bottom formed on weekly, or, breakdown below support zone that points to a flush below 200 likely.

S&P500 Review and Outlook Aug 11, 2018

Since last post on S&P500 back on 15th July, it has been almost a month now. It is a good time to see if the projection made back then has worked out as expected. Following is an update 30-minute chart of Emini S&P.

image

Review

What was expected:

a. Consolidation likely

b. If we see a pullback, the red zone would be the support

What actually happened:

1. 3 weeks of consolidation (light blue zone) where the price keeps getting back to the same starting level (the blue box)

2. Pullback happened at a higher level without touching the support area (red zone)

Outlook

So what else happened:

3. S&P chose to hold the up trendline (the blue up arrows) giving it a go for new high

4. News shock past 2 days sent S&P back down to the pocket (lime zone) and bounced

What it means is that the up trend is intact with more upside likely.

What we cannot tell is what will happen at the all time high, which is just some 10 points above last week high, if and when S&P finally challenging that.

Shameless promotion: Chart reading can be simple and effective if you are doing it right, pick up your copy of The Art of Chart Reading today!