This video shows a few simple and clear trade setups unfolding in the market for three very different sectors.
Archive for month: April, 2019
Our researchers, at Technical Traders Ltd., believe a current pennant/flag formation in the Canadian Dollar is suggesting an upside breakout move may be setting up over the next 5~7+ days. Recently, the Canadian Dollar has weakened from 0.76875 to lows near 0.74375. Current price rotation is almost perfectly aligned with Fibonacci Price theory suggesting that the recent failure to establish any new lower price level (highlighted on this chart in MAGENTA), suggests a tightening price range as the current pennant/flag formation completes over the next 5~7+ days. It is our belief that as long as the current price level stays above the 0.74375 level throughout the completed pennant apex, an upside price break is very likely.
Skilled traders may look at this opportunity for an incredible 200+ pip upside price swing. We believe the current downward price trend will be the last opportunity to target lower prices before the upside breakout occurs. The next 3~5 days will likely see prices move a bit lower, targeting the lower support channel before the breakout rally begins.
Interestingly enough, this move in the Canadian Dollar aligns with our Gold/Silver research suggesting an April 21~24 date as a major bottom/basing date. Could it be that some currency fluctuation or global market event will drive bigger moves in many of the major currencies while pushing traders into the precious metals markets at the same time? We’ll know more as we get closer to the April 21~24 date, but right now we believe all the tea leaves are aligning for some type of bigger move in later April and skilled traders should begin positioning their trades accordingly.
If you want to learn how valuable a team of dedicated researchers and traders can be to your bottom line, visit www.TheTechnicalTraders.com to learn how we can help you find and profit from these moves. We believe you won’t find anything like our proprietary research and trading triggers anywhere else on the planet. Do yourself a favor and read some of our recent research posts to see just how valuable we can be to your future – then consider supporting our team and effort to assist you.
Chris Vermeulen
Chief Market Strategist
Chris Vermeulen, Founder of The Technical Traders shares his thoughts on the energy markets, including oil and natural gas. As oil nears resistance we could see a short term pullback but overall the continuation of a range bound market. The stocks continue to lag which sure sounds like a lot of other commodities…
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Our research continues to support a Bullish price bias over the next 30+ days, very likely reaching to new all-time highs again, before June/July 2019. For many months, other researchers have continued to predict “doom and gloom” with warnings of Treasury yield inversions, global collapse events, and other crisis events. Yes, we believe continued price rotation will drive future price swings and they could be volatile moves – yet we believe any crisis event will actually become an incredible opportunity for long traders to BUY into the markets at extreme lows.
Recently, our researchers focused on OIL and the Transportation Index as key elements suggesting this upside move is far from over. Oil has moved from below $55 ppb to well above $60 ppb. We believe this move will continue higher to target the $64 ppb level were resistance is likely to be found. We do believe that some price rotation in Oil is likely to happen in the Summer months – when travel increases and Summer blend gas hits the markets. Winter has been uniquely difficult this year and the rise in Oil prices, where OPEC and foreign market events have attempted to push prices above $50 ppb, is warranted given global economic activities.
While Oil continues to climb, the Transportation Index is also rallying above recent resistance near $10,500 and pushing higher targeting the $11,250 level. This is important because the Transportation Index typically leads the US economy by about 3~6 months and is a key indicator of investors future expectations for the US and global economy. Any push above $11,000 in the Transportation Index would likely mean we are going to attempt to reach all-time highs near $11,634. A move like this would likely push the US Stock Market Indexes well above recent all-time highs as well.
Much of our recent analysis has been an attempt to relate the opportunity that exists over the next 30~60 days in the US Stock Market. For well over 12 months, we’ve been suggesting a capital shift is taking place where the US stock market, and the US Dollar, are uniquely positioned to become safe-haven investments for foreign investors. We believe this process is still taking place and we believe the US market could continue to push up to new all-time highs before another rotational move sets up. Our most recent research suggests a peak may form near June/July 2019 that should concern traders. Until then, we believe the upside price bias will continue and we still believe new all-time highs are about to be reached.
As of today, we have technical confirmation that a renewed upside price move is taking place and we continue to watch the precious metals for any signs of a base/momentum bottom. Follow our research and learn how we can help you find and execute better trades.
Take a minute to find out why Technical Traders Ltd. is quickly becoming one of the best research and trading services you can find anywhere. We are about to launch a new technology product to assist our members and we continue to deliver incredible research posts, like this one, where we can highlight our proprietary price modeling systems and adaptive learning solutions. If you want to stay ahead of these markets moves and find greater success in 2019 and beyond, then please take a minute to see how we can help you. Once this June/July peak begins, you won’t want to miss the next big move… Join www.TheTechnicalTraders.com today.
Chris Vermeulen
The Euro Futures chart is highlighting recent support and our proprietary Fibonacci price modeling systems are suggesting that a current support zone may be setting up for a decent upside move to near 1.15. Momentum has stalled to the downside after the Brexit kerfuffle. It is our opinion that this move to near 1.125 will likely hold as support and prompt an upside price move towards the 1.15 price level.
Volatility within the ZE is normal and this type of price rotation appears to continue. An upside bottom/base near 1.125 may prompt a larger upside price swing in the Euro Futures because it relates a “higher low” price formation following Fibonacci Price Theory. This set would indicate that a “lower low” attempt has failed and would suggest that the Euro Futures price would now attempt a new Higher High (above 1.155).
Skilled traders should watch for any breakout above 1.134 as confirmation of the upside price rally and target 1.15 or higher. This could also drive the US Dollar a bit weaker over this same time-span. Might be an excellent setup for quick profits.
Do you want to find a team of dedicated researchers and traders that can help you find and execute more winning trades in 2019 and beyond visit our trade alert newsletter at www.TheTechnicalTraders.com or learn our trading techniques through our Trading Courses today?
Chris Vermeulen
While we have recently suggested the US stock market is poised for further upside price activity with a moderately strong upside price “bias”, our researchers continue to believe the US stock markets will not break out to the upside until the Russell 2000 breaks the current price channel, Bull Flag, formation. Even though the US stock markets open with a gap higher this week, skilled traders must pay attention to how the Mid-Caps and the Russell 2000 are moving throughout this move.
As we continue to advise our clients that the upside pricing cycle in the US stock market is being underestimated, see this research post: we also believe that increased volatility and price rotation will continue to drive larger rotations in price before the final breakout upside move takes place. We want to continue to warn traders that we still don’t have any confirmed upside breakout with price continuing to stay within this price channel in the Russell 2000. Eventually, when and if the price does breakout to the upside, we will have a very clear indication that continued higher prices and a larger upside move is happening. Until then, we need to stay cautious about the types and levels of rotation that continue within the markets.
Recently, volatility has started to increase as can be seen in this VIX chart. If the Russell 2000 is not able to break this trend channel with this current upside price move, then we fully expect continued price rotation in the US stock markets and another increase in the VIX as this rotation takes place. The NQ recently rotated downward by nearly 4% while historical volatility continues to narrow. When volatility diminishes in extended price trends, we’ve learned to expect aggressive price rotation can become more of a concern. We expect the VIX to spike above 16~18 on moderate volatility as we get closer to the cycle inflection date near June/July 2019.
Volatility Index – VIX chart by TradingView
Overall, our researchers believe the upside price bias in the US stock market will continue for another 30+ days as our research and predictions regarding precious metals and the longer term equities price cycles continue to play out. Skilled traders need to be aware that this upside price bias may include larger price rotation and volatility as we get closer to the May/June/July 2019 cycle inflection points. Stay aware of the risks as 4~6%+ price rotations should be expected over the next 30+ days throughout this upside price bias.
Do you want to find a team of dedicated researchers and traders that can help you find and execute better trades in 2019 and beyond? Please visit www.TheTechnicalTraders.com to learn how we can help you prepare for the big moves in the global markets and find better opportunities for greater success in the future. Our team of researchers and traders continue to scan the markets for new trades and unique opportunities.
Chris Vermeulen