Wednesday, May 13, 2020

Sell on May finally started? 13/5 updated

DJIA

DJIA close lower last night, where it drop and break the support on 24k and 23860. However, it still manage to support on the thick blue line support, this is a very important support which breaking it could mean reversal.

Breaking low could also indicate the surge on 29th April is a fake breakout. 

Support: 1. 23738                            2. 23380                             3. 23000



S&P 500

S&P 500 have a long red bar last night and it fail to break 2933 for the 3rd time. The bad thing is, the candle pattern form a bearish engulfing which is a bearish indicator.
However, it is worth noting that S&P is still above the thick blue line support. Breaking this line could be a reversal sign. Have to be aware.

Support: 1. 2855                              2. 2821                                3. 2800



Nasdaq
The chart for Nasdaq is really interesting. It’s the strongest amongst all where it had break the resistant of fibo 78.6%, however it failed to stay above it.

As per what we mentioned, Nasdaq drop back below the uptrend resistant line. The bad thing is, Nasdaq had a big red bar last night and form a bearish engulfing candle at peak which is a bearish sign.

It is important for Nasdaq to stay above the thick blue supporting line in order to remain bullish, breaking below it might indicate a reversal of trend.

Supporting: 1. 9000                         2. 8900                                3.  8800

Strategy: this could be a good point to short and take profit when it hit the thick blue line. 

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.  




1 comment:

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