Saturday, January 21, 2017

YM Review

For quite some time, the Dow has been steadily sinking further away from it's failed attempt at reach the 20,000 level and recently tested contract low areas.

We are in key support/resistance levels in the Dow and closeup examination shows signs of possible rotation to the sinking trend and perhaps another 1.5% assault on the 20,000 level else the possibilities of a near 3% drop to the next lower level of support, not unheard of...

The short entry would occur monitoring for round top breakouts.

The long entry would occur after a break out long with retest.

To be continued...

Tuesday, January 17, 2017

Power of the Globex

Price action during the Globex overnight session comes in all varieties....

One of the classic moves is to relocate "price" while nobody is around to protest:

Sunday, January 15, 2017

Gold Revisited

In a recent blog entry, we observed gold putting in a round bottom - A follow up examine is of interest.

The 20 year long month time frame view shows gold directly below it's 20 year Point of Control after rejecting defined resistance.  Day trading experience suggests chop at this location.

A 5 year weekly view agrees with the monthly time frame review "plus" shows the arrival of buyers.

The Daily View shows the buyers in an increasing presence, rescued of trapped traders, and possible targets.

Finally, with a 4 hour view, trapped traders back from November are identified as targets.   A 30 minute view can't reach back that far.  

Confusing is that these trapped traders occurred prior to the contract rollover - My hunch is that spread traders may have placed positions there prior to the rollover.     {follow up}  

Otherwise a rotation short is possible against a defined edge, an edge of a POC, and requires an exception initiating trades off composite POCs.

Natural Gas Revisited

A few days ago in a prior blog entry, we noticed that NG had tested and rejected price at a specific historical price level - Another review seemed appropriate using different time scales.

A look at the five year span, we see price rejecting the low at 3.098 and also rejected the price from approximately 2 years ago - It would seem natural for price to fill in the adjacent Low Volume Area.

A one day timeframe analyses is conducted.   From here, we can see price homing in on a specific Low Volume Area (and perhaps settling)

Finally, a 30 minute view is performed zooming in on the recent price rejection also corresponding with a composite High Volume Area Point of Control (purple) and an MP anomaly consisting of a string of single prints.    

Interesting is the declining On Balance Volume indictor suggesting Liquidation.   A neutral trading area and a long trading area are suggested.