With the market indexes continuing to trade positive, it confirms the uptrend remains in progress as long as the indexes continue to trade above the T-line. The strongest index was the NASDAQ. It actually gapped up and opened at a resistance level and traded positive from there. Economic indicators, such as the manufacturing index was up strong from May to June. This information appears to be overriding the increase in Corona virus numbers. Let the market tell you what the market is doing, the Japanese rice traders professing. We may not know what is producing the bullish sentiment, but candlestick investors do not need to know. Candlestick investors have the benefit of visually analyzing what everybody else’s decision is doing to the market trends. Currently there does not appear to be any exuberant buying in the market. However, TSLA and AMZN have been producing huge profits and are showing signs of exuberance. Be ready to take profits in price moves that are moving too far too fast.
J-hook patterns have produced significant profits. NIO and NIU J-hook patterns produce the prospects of much more upside. The candlestick patterns have produced consistent profits even as the market indexes oscillate. Pattern breakouts are indicating which sectors are now showing new strength. The chemical companies are showing good pattern breakouts ie SQM. CZZ has a very strong chart, showing a kicker signal breakout of a fry pan bottom through the 200 day moving average. This is what we call convergence analysis or 2+2 analysis, the more factors you can put into a visual analysis showing improved probabilities with multiple bullish indications merely improves the probabilities of not only being in a correct trade at the correct time, but a very strong price move.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team.
