The candlestick charts gave a strong alert that a reversal was coming. Join us this Tuesday night to learn the five indications that a reversal is about to occur based upon candlestick analysis. This week, with the indexes trading below the T-line, there are some strong very sectors to pay attention to. Homebuilders and supplies have numerous bearish charts,PHM, FAST, NAS, and DY. The computer software area has good short setups, TENB, NEWR, PRO, SPSC, FEYE, RP. Internet software companies showed strong sell signals, MDLA, UPWK, CDLX, and PINS. The bullish sectors are toys and hobbies, OSW, TWMC, BBW. Retail stocks especially in the clothing area produced good bullish charts,ANF, TLYS, BKE, URBN, ans SCVL.
The market uptrend will not continue until the indexes show a close back up above the T-line. The current consolidation stage could last for two days or two weeks. These market conditions make it prudent to have both long and short positions established in the portfolio. Although the markets may not be showing a decisive trend movement, the simple candlestick scanning techniques allow for pinpointing the strongest or weakest sectors/stocks. There will always be good bullish charts in a down market as well as good bearish charts in an upmarket. The graphics of candlestick analysis make it easy to identify the strongest potential price moves.
