07/08/2018 |
Market Update Into 7/9: Trading Signal Alerts on Trend Breakouts and Breakdowns
Below are three key tickers that we have analyzed and identified interesting trendline setups in. We believe keeping an eye on these is crucial to watch this week.
A prepared trader is a profitable trader, and Sunday is a great day to get ready for the week. Start by setting up your Dynamic Price Alerts and remember: make a plan, trade the plan. Be smart out there!
Ticker #1: $SPY (SPDR S&P 500 ETF)
The S&P 500 surprised many bearish traders as tariffs officially went into effect on Friday and the market rocketed to the upside, despite the news. The weekly candle closed as a strong bullish engulfing candle which was identified by our automatic candlestick recognition feature. Check out the 4 Dynamic Price Alerts we created below for this week, and how we identified them using TrendSpider Automated Technical Analysis.
- Moving Average Support: The SMA (20) (Simple Moving Average, 20 time periods) below is acting as the first area to watch for the price to hold. If this area does not hold, we will look for the lower Bollinger Band as the next area of support
- First Resistance: 120-minute candle, 1st resistance trendline above. As the price continues to move up along the upper Bollinger Band, the first area of resistance we have on alert in the $278 area. This area was previous support and is now acting as resistance above.
- New Highs: 120-minute candle, 2nd resistance trendline above. This alert was named “New Highs” due to the fact that the SPY will be hitting new highs in the current channel it is trading in if this alert is set off.
- Weekly BB Resistance: Weekly candle, Upper Bollinger Band. If both alerts are triggered on the 120-minute candle, the next area we have an alert set is at the upper Bollinger Band on the weekly chart. The last time the price started moving up along the upper Bollinger Band, the white resistance line was tested above. If that happened again, the SPY would see new “All-time highs”.
Ticker #2: $XBI (SPDR S&P Biotech ETF)
$XBI moved up huge all week with Friday being the biggest gainer partly due to positive news out of Biogen ($BIIB, a stock represented in this ETF) regarding their successful Alzheimer’s drug trial, which pushed shares as high as 20% intraday.
- Moving Average Support: The SMA (20) (Simple Moving Average, 20 time periods) below is acting as the first area to watch for the price to hold. If this area does not hold, we will look for the lower Bollinger Band as the next area of support.
- Third Time’s a Charm: Daily Candle, resistance trendline above
This will be the third time price has tested this particular area above if the price continues up. If enough demand comes in to break this area, a short-term breakout may be underway to the next resistance area above on the 120-minute candle around $104 to $104.50. - 2-Hour Resistance: 120-minute candle, resistance trendline above
If price continues to move up along the upper Bollinger Band and breaks through daily resistance around $102, we have an alert set for resistance above around $104-$104.50. If price breaks out through this final area, our next resistance trendline on watch would be the red resistance candle above on the daily chart. - 120-Minute Candle, SMA (20)
Ticker #3: $TSLA (Tesla, Inc.)
As Elon Musk has been in a public Twitter battle with short sellers over the last several months, it seems that bearish sentiment may be starting to take over. Price is nearing crucial support here and it looks as if a breakdown may be on the horizon if bulls don’t take back control of the price action, and quick!
- MA Support: Weekly candle, SMA (20)
- Hard Resistance: 240-minute candle, SMA (100)
The SMA (100) on the 240-minute candle has acted as hard resistance over the last 4 sessions. A breakthrough this area to the upside would suggest bulls are possibly gaining back control. - Channel Support: 240-Minute Candle, channel support below
TSLA remains in an upward channel but is starting to trade very close to support. We have an alert set if TSLA breaks down through this area below which would be a bearish signal for the ticker. - 20-week Moving Average: The price closed almost right on the 20-week SMA. A breakdown of this level in the past has resulted in a move down to the lower Bollinger Band at times. It is interesting to note that this lower Bollinger Band coincides almost perfectly with the channel support below.
Putting It All Together
As world events continue to unfold politically and economically, it seems the volatility that has been around all year may continue into the second half. As the charts change, so will our trendlines and dynamic alerts to stay on top of the current technical trends unfolding. Remember, stay smart out there and always do your own due diligence for all trades.
