Category Archives: Technical Analysis

Reversals After a Gap on the Open Could Mean Anything

Yesterday stock indexes gapped up on the open but then reversed course to close sharply lower. This type of price action is common and it does not indicate high probability of a major top formation as some analysts claim. As … Continue reading

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A Short-Term Correction in Stocks Appears Inevitable at This Point

Price Action combined with technical levels points to an inevitable short-term correction of about 3% in S&P 500 from current levels and towards a price attractor near the 200-day moving average. Share

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Gold Testing a Crucial Fibonacci Retracement Level

After a 61.8% Fibonacci retracement of a three-year rally, a base for a rebound was formed near 1,150 and prices are now testing the 50% Fibonacci retracement level near 1,300. This is a crucial test and its outcome will decide … Continue reading

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Markets Can Stay Overbought or Oversold and Trend at the Same Time

The idea that one can trade the markets with technical indicators without looking at fundamentals is ludicrous. Unless one is a market maker or a high frequency trader, an understanding of fundamentals is required for using technical analysis effectively. Share

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No Bragging, Just a Reminder

I do not like to brag but once in a while I think it is good to remind of a few successes because no one else will in a competitive and crowed space. A week ago I wrote that bears … Continue reading

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A Trend Reversal in Silver? Not so Fast

Silver has had a good rally, SLV is up more than 15% since the first trading day of this year and yesterday it closed just below its 200-day moving average. Some view this rally as a potential trend reversal but … Continue reading

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An Uptrend and a Downtrend Running in Parallel

A stock market can avoid a major correction by having an uptrend and a downtrend running in parallel while overall it exhibits an upward tendency. This is the net result in the US stock market that is caused by massive … Continue reading

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