LikesMoney
Independent Analyst
Stocks broke below Wednesday's low.
Stocks formed a bullish reversal on Tuesday. Stocks followed that by forming a swing low and closing above the 10 day MA on Wednesday to make Tuesday (day 16) look like a half cycle low. However, stocks dropped on Thursday, breaking below Wednesday's low and closed below the 10 day MA. Breaking below Wednesday's low negated the swing low that formed on Wednesday.
Stocks are currently in a daily uptrend and appear to be forming a triangle consolidation that could still go back and forth a few more days. With stocks being in a daily uptrend the odds still favor a bullish break out of consolidation.
However, there are 4 things that point to a larger degree - intermediate cycle decline is unfolding.
- Current peak on day 11. If that holds -- that has good odds of forming a left translated daily cycle.
- Stocks closed below the 10 day MA, turning the 10 DMA lower.
- RSI did not embed in overbought following the day 16 bullish reversal.
- Stocks preached the daily cycle trend line on Thursday.
If stocks deliver bearish follow through and close below the 50 day that will signal that the larger degree, intermediate cycle decline is unfolding.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.