and The Candlestick Forum
Today’s positive trading has clearly revealed the Doji sandwich breakout in the NASDAQ is putting it well above the downtrend in resistance level. The Dow and S&P 500 has broken through their resistance levels. Today’s strength needs to be continued into the close to illustrate the new uptrend breakout remains in progress. Stay predominantly long.
Today’s positive trading, a small gap up through the resistance level in the NASDAQ, implies that the next wave to the upside is in progress. The Dow and S&P 500 are currently nudging the upper resistance level. Continue to hold long positions with the expectation that the bullish trend is being confirmed, especially by the NASDAQ.
The market pullback continues to toy with the T-line/50 day moving average area. These areas become an important piece of information. If they do not hold up at the support areas, the downtrend/drifting market conditions will continue. It will be very important to see if they hold the support levels today. Gold still remains the strong sector in this market. Holding long positions requires not seeing confirmed reversal signals.
A few weeks ago I gave an update on Crude Oil and said that we had some evidence that a small corrective wave was beginning. That continues to play out and the levels that this current move down are likely to get to are ~$45.50 – $41.5 before the next impulsive wave up begins. This analysis is supported by both Elliot Wave and Ichimoku Cloud. When you get two different studies giving the same result, that is pretty powerful. I walk through both of these analysis’ in the video.
Natural Gas is continuing in the uptrend that I called out in the last update. Even though it took a pretty big hit today, 7/5/16, the overall trend is still very bullish and we are a long way from the ultimate recovery targets. This too is supported by both Elliot Wave and Ichimoku Cloud and is covered in the video. WMB looks like a nice trade to play Natural Gas with, if it gets above $22.25. If it does get above that level, then the first target for it is $29.07, in about 4-6 weeks, which would be a pretty nice trade.
So, Oil correcting a little and Natural Gas still heading up. I look forward to continuing the updates. Be sure and let me know if you have questions or comments. Thanks!
Dean Jenkins
MBA from the University of Washington. Dean is an expert in Technical Analysis, Money Management, Elliott Wave Analysis and founder of FollowMeTrades.com.
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The day before a three day weekend usually does not show any great resiliency one way or the other, but today’s bullish trading, albeit not very massive, is pushing the indexes toward the obvious resistance levels. That may well be capper of trading for the day/week. However this still indicates there has not been a change of the bullish sentiment after the snap back has been in progress. Continue to stay predominantly long until there is any signs of a candlestick reversal signal in the indexes.
July 11th Daily Market Comments
As anticipated, the breakout of the resistance levels on Friday are showing the investor sentiment is now in a new bullish trend. The NASDAQ continues to gap up to the resistance level of the recent highs. The Dow and S&P 500 have broken through the highs. The J-hook pattern in the Dow at the resistance level produced the high probability that the breakout to new highs was about ready to occur. Look for a little bit more upside but then be prepared for some short-term profit-taking.