The indexes look weak at the moment in the shorter time frames. Although the Dow and S&P 500 is in a long term uptrend, volatility is expected in the shorter time frames. For the trader, it does not really matter which way it goes. A break above a box or below it will tell us what to do. Long or short. The trader reacts rather than predict.
Nasdaq is under considerable pressure and looking at the futures chart, the indexes will most probably open lower. However, do keep in mind that the QQQ is near its rising 50 day moving average. This 50 MA has been able to keep the QQQ from dropping the last two times.
I try to cover all time frames from the long term to daily to 60 min and the 15 min and 5 min charts. Each time frame will need a different type of action depending on what the trend is at the moment. I have learned to ask people back what time frame they would like to know when they ask me to analyze a stock. That's because different people have different thinking and time horizons. But in summary long term is still up, mid term is ok, but short term is not very good especially for tech stocks.
With that in mind, let us have a look at what the charts are telling us.
For those of you who are wondering what the pink zone, red zone and white zones are. Its just a simple trend following method that I use. I use the 20 MA and the 50 MA to help me filter out when is a good time to long or short stocks. Then I look at the trade setup to enter or short the stock. To know more about this trend following system I use read How To Avoid Huge Losses In Stocks And Maximize Profits Using One Simple Stock Market Trick.
Generally, when the stock is in the red zone, it means don't long in that time frame. On the flip side, it means it is conducive to short. But of course, the entry will be based on the trading strategy setup.
Here's the summary of what the charts are telling us:
Aug 17, 18 05:07 AM
In this lesson we will take a look at the technical developments of OKA Corp's stock price and why it moved the way it did. We will also have a look at what might happen to OKA's stock price.
Aug 16, 18 07:28 AM
In this lesson, we will learn how and why BMY manage to bottom out and start a new uptrend.
Aug 14, 18 08:19 AM
In this lesson we will learn and examine why Pentamaster was able to recover all of its losses to start a new uptrend and achieve new highs.
Aug 13, 18 05:56 AM
The KLCI is currently at resistance territory after a nice big rally. I would consider a sideways trading a possible scenario at the moment.
Aug 13, 18 05:22 AM
In this lesson, we will learn how AAPL's 15 Min stock chart formation help to send the stock higher for 2-3 days to give traders a nice swing trading opportunity.