What We Know About Facebook Before the Drop

Here is a weekly chart of Facebook. We do know a lot about it before the earning disappointment.

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1. The original channel has been in force for years (red lines)

2. Yellow zone marks the channel breakout

3. Orange line is the 100% expansion

4. Magenta line is the 200% expansion and the usual end of a run on first touch

5. Real support back down at the pale green zone

What’s the use of knowing the potential?

To name a few, protect your profit if you were long the stock, anticipation of Nasdaq 100 would have serious resistance to go much higher and, as a minimum, not to chase the stock of Facebook over the past month or two for long term holding.

Bitcoin Outlook July 26, 2018

I mentioned what I think about Bitcoin in the book when Bitcoin was still trading above $8000 at the end of May 2018. Here is an update of what happened so far and the outlook in the near future.

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Those of you who have read the book would recognize this chart. It is Bitcoin weekly.

The zone for which Bitcoin has to move down to, as stated in the book, is somewhere near the 5300-5600 zone.

When Bitcoin tagged 5700 (green up arrow) and bounced by end of June, we have a weekly level FBO against the first quarter high.

This signal a run back up to the nearest resistance which is highlighted by the 2 up trendlines in red.

Until Bitcoin can trade above that and stay above $10,000, the risk of it moving lower again is still pretty high.

If you are interested in learning my way of chart reading, go get my book The Art of Chart Reading today!

Nice Catch: S&P500 July 3 to July 13, 2018

Here is my trading analysis made during July 3 to July 13. The outlook was explained in my real-time commentary. Here is a recap of what I saw and the potential outlook from here.

Following is a 30-min regular trading session (RTH) only chart of Emini S&P500 future contract.

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By the end of the week of June 29, 2018. marked by the dark green up arrow, we have a very volatile week that swing back and forth almost 2% everyday.

Yet something very interesting happened – an inverse head and shoulders will be formed if the neckline at the top is cleared.

The red horizontal lines highlight the shoulders and the green horizontal lines highlight the head.

The best moment for jumping into this move is marked by the bright green arrow for which a confirmed 1-2-3 buy happened.

The target highlighted by the red box is expected to at least give us a pause using my trend line targeting method.

The blue box highlights the Inverse Head and Shoulders target for which consolidation and pullback is likely to follow.