Important Stocks To Watch - Stocks At Or Near 50 MA, 200 MA, Chart Patterns

Daily Stock Market Commentary May 15 2017

The major indexes are making a nice downtrendline. SPY and DIA are making it and if they break above it, the major indexes are very likely to move higher and challenge the old highs. The QQQ's meanwhile are forming a box pattern and a breakout above will bring most tech stocks higher.

As you can see from the 60 min chart of DIA above, the ETF is forming a very very nice downtrendline to break. If the DIA moves above this, there might be a very smooth rise upwards and Dow may soon challenge the old highs and even move higher forming new highs. Whether it will be able to make all time highs in one day or this week I really don't know. But breaking the downtrendline will represent a good shift from bearish mood to bullish mode. This is when most market commentators will once again say how great the stock market is once again.

QQQ which is much more stronger than the SPY and DIA is forming a very nice box which if it breaks will send many many tech stocks higher. When the QQQ leads the market and moves higher before the rest of the market, it is usually a very good sign for the general markets. A stock market lead by tech stocks is healthy and will usually move higher. We continue to remain bullish as long as QQQ is above its rising 20 and 50 MA. Since QQQ has formed many layers of boxes, a correction in the QQQ and general market will not be so smooth. Meaning, the path of least resistance is still upwards and even if it corrects, it will give us time to get out.

SPY is forming a somewhat triangle pattern. A break above will be very good.

Meanwhile across the pond, the FTSE 100 is making new highs and after it broke the downtrendline, the index moved higher. A rising stock market before the election in UK is good for Theresa May which is from the incumbent party.

Oil has made a short term bottom and it has met the pennant target. I believe it will move sideways for awhile to absorb the supply from the left. It is very likely to move higher looking at the charts. There is support beneath which a 60 min box has formed and this will keep the bears away for awhile even if it drops.

Looking at the long term charts of oil above, we can see that oil is bottoming and if it goes above the weekly charts, it is very likely the reverse head and shoulders bottom in the weekly charts's target will be met in the future. But this is a weekly charts, so patience is needed.

If you like this stock market commentary, do come back every day for more. I comment on the stock market almost every day.

Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com

Charts with the investing.com logo are courtesy of Investing.com powered by Trading View

  • Help support this page and press the Facebook Like button below. Thanks!

Join Dstockmarket's Facebook Page 

Recent Articles

  1. October 2021 Stock Market Analysis

    Oct 27, 21 09:09 AM

    Are the markets in an uptrend or downtrend? Where are the support and resistance areas? Stock market analysis for October 2021.

    Read More

  2. Technical Analysis Of Tesla Stock, TSLA

    Oct 26, 21 05:47 AM

    A look at Tesla stock chart using technical analysis. Is it in an uptrend or downtrend and where are the support and resistance?

    Read More

  3. Technical Analysis Of KLCI

    Oct 25, 21 09:20 PM

    Technical analysis of KLCI, learn the trend of the index and support and resistance areas.

    Read More

  4. Technical Analysis Of Oil Prices : Where Will Oil Go?

    Oct 24, 21 07:32 PM

    Analysis of oil prices. Is it in an uptrend or downtrend and where are the support and resistance.

    Read More

  5. CTXR, $2.30 To $4.50 In 12 Trading Days

    Oct 24, 21 07:03 PM

    Learn how the cup with handle pattern hinted of a big run in CTXR.

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.