Candlestick analysis provides simple scanning techniques that not only reveal the direction of prices, but the nature of the direction. Currently, the indexes are not showing any identifiable direction. The Dow is still trading in the compressing area of a wedge formation. The other indexes, after hitting resistance levels have pulled back to support levels and appear to be holding. An additional observation from candlestick scans reveal bullish trading today in numerous stocks but not necessarily showing bullish trends, merely indicating some buying in prices that have pulled back. In general, the market conditions continue to reveal an indecisive sideways trading nature until upper resistance or lower support levels are breached. This does not make for very good trading but it allows for being prepared for breakouts one way or the other. That is where good profits will be made.
March 16th Daily Market Comments
Candlestick analysis provides simple scanning techniques that not only reveal the direction of prices, but the nature of the direction. Currently, the indexes are not showing any identifiable direction. The Dow is still trading in the compressing area of a wedge formation. The other indexes, after hitting resistance levels have pulled back to support levels and appear to be holding. An additional observation from candlestick scans reveal bullish trading today in numerous stocks but not necessarily showing bullish trends, merely indicating some buying in prices that have pulled back. In general, the market conditions continue to reveal an indecisive sideways trading nature until upper resistance or lower support levels are breached. This does not make for very good trading but it allows for being prepared for breakouts one way or the other. That is where good profits will be made.