Monday, May 11, 2020

Sell on May? but the chart looks bullish!

The 1st trading week of May is indicating a bullish pattern, hence does selling in May still valid? 
We believe it would be better to wait for reversal pattern before selling. 

DJIA started the week with a small green candle and form a bullish counter attack chart pattern on Monday follow by a gap up on Tuesday but close with a small shooting star. DJIA had been on a bumpy ride over the week where 3 out of 5 trading days were close lower and fail to close above the resistant of 24000. However, DJIA manage to close higher on the last trading day and back above the resistant of 24,000 point.

As long as DJIA don’t drop below the blue line and 23800 then DJIA should be still doing fine which could be upward bias. However, one thing to notice is that the volume is decreasing.
Resistant:  1. 24655                        2. 24805                             3. 25000                             4. 25200
Support:    1. 24000                        2. 23800                             3. 23380

DJIA Weekly
DJIA weekly chart shows a lower opening and close high chart which is almost a bullish engulfing chart, this looks likes it will be bullish bias for next candle.

S&P 500
S&P 500 consider the second strongest for US market which is performing slightly better compare to DJIA where it is about to challenge the recent high of 2953, on the other hand, SP500 also is about challenge the 61.8% fibo retracement which is the resistant now. As long as SP500 don’t break below the supporting of 2890 and the blue line, then it will be upward bias.

Resistant: 1. 2933                            2. 2944                                3. 3000
Support:   1. 2900                            2. 2890                                3. 2850

S&P 500 Weekly
SP 500 have got a big green candle for this week where it also form a candle pattern of bullish engulfing which indicate bullishness for next candle. 

 Nasdaq has been pretty bullish over the week where it had 3 gap up and close highest. This is the strongest index for US market. Nasdaq had break its resistant on 8916, 8968 and 9000. The next resistant will be the fibo retracement of 78.6% (9172).

The surge in Nasdaq is very bullish however, we can see that it had just break the uptrend resistant line, based on the past 2 times, it broke the resistant and retrace, will this time be the same again?
Resistant: 1. 9172                            2. 9200                                3. 9300 (the gap down area)
Support:   1. 9000                            2. 8916                                3. 8787

Something to notice is that the weightage of Nasdaq is led by a few companies.
        1.      Microsoft 11.84%
        2.      Apple 11.44%
        3.      Amazon 9.98%
        4.      FB 4.31%
        5.      Googl  4.02%
        6.      Goog 3.99%
        7.      Intel 2.74%
        8.      Nvdia 2.06%
        9.      Netflix 2.06%
      10.   Pepsi 2.01%

      These 10 companies are now 54.45% of Nasdaq, which mean these will be the company that dictates the direction of Nasdaq.

   Nasdaq Weekly

We understand that the daily chart shows that there is an uptrend resistant which might causes Nasdaq to retrace. However, something to notice is that the weekly chart form a very strong reversal which is a bullish engulfing chart. This is quite a bullish chart which could indicate another green candle for coming week.

Disclaimer: The materials shown above is just for education purposes. No buy or sell calls are intended. Please consult your brokers for investment decisions. The author above will not be responsible for any trading decision and action taken by the readers.  


Lucy Morgan said...

Quick Cure I will advice you to contact Dr KHAM AT ( OR ) where all problems are solve without stress and delay. My family was getting drawn in sickness, we were all affected one after the other and medical prescription was not helping us. Till a friends doctor direct us to contact Dr KHAM for quick cure and total cleaning. Dr KHAM is a miracle worker. It is never too late with Dr KHAM contact him today with { OR  } you can also contact him on Whatsapp +2348159922297, You can Also Visit his website to know more about him at >   
He also Cure
1) HIV/AIDs Virus
2) Hepatitis B and C
3) Herpes
4) Cancer
8) Erectile Dysfunction
9) Trichomoniasis
10) Chlaydia
11) Gonorrhea
12) HPV
13) Syphilis  

charles vanessa said...

I am here to testify how great man called Dr ADAZAL helped me out with herbs and roots which he prepared for me in use of curing my herpes . I takes his product (cure) for (14) days before I am to known I was totally cure out of it, and i promised him that i will testify my healing to the whole world about how he cured me which I am very happy I am doing now , Dr ADAZAL also cure all kinds of diseases , HEPATITIS, A,B,C , CANCER, DIABETICS , FRIBLOD,ALL KINDS OF SPELL CAST ,and so much more , please you can get him contacted on his whatsapp or call on +23488073688335 Or email via
He can also cure following virus
Visit his website.
Visit his Facebook page.

Amelia Bethany said...

I have been a herpes carrier for 2 years and I tried every possible means of curing but all of no useful until I saw a health promotion on a herbalist from West Africa who prepares herbal medicines to cure all sorts of diseases including #HSV and many others sickness but look at me today am very much happy and healthy,I'm telling you today don't lose hope keep trying God is with you,If you needs Dr.Chala help contact him on his email or you can visit his website on or


US Market has been doing well last week, however, its always important to stay cautious.  Stay VIGILANT! DJIA  DJI closed higher over the we...