Today’s Pre-Dawn will be dedicated to trendlines and stochastics and I will highlight 4 markets worth a good look (with the charts attached).
4 markets that have great technical set-ups to have on your radar for this week!
Chart patterns that combine breakout setups and gaps can make for good trade opportunities. Tuesday morning I was talking to a client, call him Jim, who was short the November soybean futures. There was a gap from 1332-0 to 1331-4 in the daily chart that hadn’t yet been filled in. Jim thought they might fill in the gap on Tuesday while I thought they might wait at least a day.
The Shooting Star is a formation that has the market taking a hard stab at a blow off to the upside but eventually failing and giving way to the sellers of the market. This indicates that trader sentiment may be shifting to the downside.
Bullish Hammers, as the name suggests, is a signal on a chart that alerts you to be on the lookout for a market that is setting up to reverse and trade higher! I’ve highlighted in yellow this exciting candlestick set up in the chart below.