As mentioned in the previous article, SP500 encountered resistance at 4600 level and fell hard and next day touched 4444 level.
My Stock Market Learning
This Blog is about My Stock Market Learnings and I will explain how I select stocks using Wyckoff method. I first learned and got glimpse of stock market in 2008 during the financial crisis. From there made some rookie mistakes and did not learn much, I came across Wyckoff method in some trading website and started learning the method. This blog is my way of learning and expanding the understanding on Wyckoff method. "This is the way"
Sunday, February 6, 2022
2-4-2022: SP500 Daily Analysis
Wednesday, February 2, 2022
2-2-22: SP500 Daily Analysis
SP500 is up for 4 days continuously, this kind of rally was seen in Dec-2021. SP500 pierced 4500 level with decent spread and volume. As I mentioned in last article, re-testing 4225 level is almost negligible. Last two buying pressure is decreasing, this is evident in the spread and close of the candles. Sellers try to push the price down and every time buyers stepped in, this is bullish condition. Shortening of thrust needs to watched as it exactly happening in the another resistance level 4600, so there is chance of retracing and may re-test 4500 level. Any high spread down bars are potential threat to the bullishness that was created last four days.
Earnings keep next couple of weeks interesting.
Monday, January 31, 2022
1-31-2022: SP500 Daily Analysis
SP500 has two good rallies in a row, both of them closed at the high of the day, these are good signals that buyers are in control. SP500 is encountering resistance at 4500 level, this would be a good test for the buyers to show their strength. Another point is see close were the last 3 down bars closing, will all the volume, SP500 shredded only 25 points, which tells it going under absorption.
- If we fail to penetrate the resistance level and price falling with good spreads and with good volume (can happen with low volume also, it means buyers stepped out) then there is high chance of SP500 falling again and retest 4300, need to watch on this.
- If price penetrates the resistance with good spread (that means buyers are aggressive) and good volume and 4225 is bottom, we may not retest it again.
- If Price hits resistance and falls moderately with low volume may touch 4440 to 4420 levels, then its considered as bullish as sellers are not aggressive and price has to rally from here.
Wednesday, January 26, 2022
Tesla Analysis with Wyckoff Method
1-27-2022:
As I mentioned in yesterday analysis, TSLA is trading range with distribution bias or characteristics, today the price action confirmed it. Price pierced through 890 demand line. Good effort (volume) resulted in good result (high spread bar), both price and volume are in sync.
Based on Point and Figure chart, this whole distribution range from UT to BC has a cause, which leads to price reaching 670 levels and maximum 550.
If you are long on Tesla, take appropriate measures, either buy puts or trimming it down.
1-26-2022:
This is going to be my first analysis on TSLA. Obviously TSLA had great run and now its in consolidation/trading range, now my goal is to use these clues and make smart decision whether stock is going up or down in medium term and profit from the moves in either case. It made higher high in Nov at 1243 and made higher low in Dec at 890 and touched 850 intraday on 24-Jan-2022 . Attempted to up in Dec-2021 but failed short at 1200 price level where it encountered huge resistance but found support again at 980 and finally broke 980. So from daily levels 1200 resistance level and 980 and 890 support levels are very crucial, watch the price carefully when stock around this level.
1-26-2022 : Daily Analysis
Today SP500 ended 0.15% lower, but not much can be infer just from close to close unless we see daily chart or hourly chart. There was big battle between buyers and sellers through the day and sellers won once FED news released, sellers drove the market to almost 4300 and then buyers stepped in regained 49 points. As I mentioned yesterday, SP500 is in trading range and in Phase B, which experience lot volatility from these moves and news as well.
Just stepping back and seeing SP500 from a bigger picture, still its not good news, its struggling at 50MA line and at the critical juncture. This chart provides more clarity on the Buyers and sellers battle and looks like both are in control.
Tuesday, January 25, 2022
1-25-2022 : SP500 Daily Analysis
SP500 attempted to go down in the morning and turn back again by the end of the day. Did not retest 4220 level intraday, which is good thing for bulls, this shows bulls are aggressively supporting price in this level.
From a Wyckoff methodology, we had SC and AR yesterday and Secondary test (ST) happened today around 4300 level. This completes Phase A, now SP500 enters Phase B. In Phase B, price spread can be erratic and so do volume and buyers and sellers try to take control, so lot of volatility expected in coming days, also there is high chance it will retest 4220 level in Phase B. SP500 is in trading range now, coming days will dictate whether market goes higher or lower. Will discuss more on this as it unfolds.
Monday, January 24, 2022
1-24-2022 : SP500 Daily Analysis
SP500 fell almost 4% intraday and closed with +0.28%, that's huge turn around. SP500 dipped through 4300 support and stayed atleast 3 hours before turning around and managed to close above 4410. As I mentioned in yesterday report, touching 4300 is highly likely (and happened now), how the price behave at that level sets the tone of the next phase. Its remarkable that buyers are showing up at the level they are expected and supporting the price, any weakness in this area is a big trouble for bulls.
2-4-2022: SP500 Daily Analysis
As mentioned in the previous article, SP500 encountered resistance at 4600 level and fell hard and next day touched 4444 level. From Wycko...
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SP500 fell almost 4% intraday and closed with +0.28%, that's huge turn around. SP500 dipped through 4300 support and stayed atleast 3 ho...
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As mentioned in the previous article, SP500 encountered resistance at 4600 level and fell hard and next day touched 4444 level. From Wycko...
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1-27-2022: As I mentioned in yesterday analysis, TSLA is trading range with distribution bias or characteristics, today the price action con...