The market indexes are showing a potential reversal. The important word is potential! The Dow showed a bullish reversal signal after supporting at the same level it supported a few months ago. However, although the NASDAQ and S&P 500 traded positive on Friday, they didn’t form reversal signals. And they did not close above the T line. This makes it important to see what the premarket futures are indicating for the open on Monday. The Ukrainian situation still acts as a cloud over any bullish trading. When markets are in transition mode, learn to be patient for confirming candlestick signals and patterns. The confirmation dramatically improves your probabilities of being in correct trades.This does not deter establishing trades in the strong candlestick signals and patterns.
IMGO is demonstrating a bullish breakout after a series of Doji’s. This is a very strong reversal pattern because of the magnitude of the indecision.CTRN it is providing a strong sell pattern trade. This is adding numerous candlestick trade indications that dramatically improve the probability of not only being in the correct direction but in a strong price move direction. The oil sector remains a strong sector due to oil prices continuing their uptrend, a consequence of a Ukrainian conflict. Oil stocks can be bought on strength on Monday. COP, APA, OXY, EOG. Airlines have been showing bearish patterns. They can be shorted on weakness MondayUAL, DAL, LUV ALK.
