Relief Bounce or More? 7 Securities with Buy Signals
Unveiling the technical setups and key levels indicating bullish momentum in the middle of the storm.
Last Wednesday night, this publication accurately predicted an impending bounce, based on a meticulous analysis of key metrics observed during past major corrections. As anticipated, price action rebounded.
Price action bounced on Friday as expected, and what is coming is an opportunity for people who were caught off guard or who did not take the hard decision to sell despite the bearish signals raised in this publication since February.
Three essential editions, published before and during the market's peak, are available for you. Click on each title to access them. A premium/paid subscription grants access to all three and all the library in the site.
Navigating Major Selloffs: 3 metrics To Watch: This publication provides a navigation of the selloff, based in clear metrics that have been observed during previous corrections, including the “Trade War and Government Shutdown 1.0” in 2018.
Navigating Market Crossroads: A Technical Study of Historical Corrections: For a long term perspective, this edition presented specific facts about previous corrections and what can be expected if the selloff continues after the incoming bounce.
Navigating the Market's Tides: The Power of Elliott Wave Analysis: After a whole year bullish, I stated since September that $6,100 was going to bring a major rejection, I published this special edition anticipating potential move incoming. A fake move after inauguration delayed what we’re seeing today and anticipated back then.
Last but not least, remember to read the Support and Resistance levels for the week ahead including 35 securities: S/R Levels for March 17 - 21; and the previous Weekly Compass from last Saturday: Lower Lows Across The Board
Let’s begin with SMH and PLTR:
SMH is poised for a bounce next week, following two consecutive weeks of Bollinger Band breaches. Support was established between the previously shared weekly levels of $216.3 and $207.5. A bullish continuation is expected above $221.3, targeting $232.2. Conversely, a drop below this level could lead to a bearish continuation towards $215.17. The strong annual level at $231.2 warrants caution upon reaching that price, as it may induce rejection. For the medium and long term, the chart continues to signal caution for bulls, given the impending bearish crossover of the 20 and 40-week moving averages, and the highlighted volume gap. Rapid price movements are common between gaps, and the oscillator is not yet oversold.
PLTR: Consistent with last week's analysis, PLTR was one of the few stocks, along with precious metals and MSTR, exhibiting bullish patterns. The point of control maintained its support role, converging with the 20-week moving average. Price action recovered from the $73.5 secondary weekly support and proceeded to cross the central weekly level. The two latest weekly candles suggest a potential end to the selling pressure. PLTR continues its pattern of wide price swings. A bullish continuation is expected if $82.7 remains as support, with a target of $90.8 and potential extension to $95.4 if there is a broad market rally (something to analyze below with SPX and NDX). Conversely, a break below $82.7 could initiate a bearish reversal, targeting $78.1.
Last week, the chart open for everyone was IWM (as today SMH and PLTR), presenting a bearish setup that was confirmed, the updated analysis is below.
The same in-depth analysis describing the current setups, with price targets and key annual support and resistance levels continues for SPX, IWM, DXY, GLD, SLV, TLT, NDX, SMH, MSTR, DJI, GOOG, AAPL, NVDA, META, MSFT, AMZN, and BTC; with volatility and breadth indicators analyzed. If you actively invest or trade any of these securities, this publication is essential for making informed investment decisions.
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