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Why We Should Expect Something Different This Time 4/19/21

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

First, let’s start with a little perspective. This is a 2 hour bar chart back to early March. Lately the market has risen for 10 days on weaker momentum. It suggests that this 10 days has been a down phase of sorts, relative to the two previous uplegs. That would imply a breakout and acceleration ahead. On the other hand, the big scoop in the middle of the chart from which this launched only has a measuring implication of 4160. We got a little higher to the trend resistance zone now around 4185-4200.

tvc_09deaa829db85c9619b63a5836b55732.png
Click to enlarge

I expect they’ll test that again today. A breakout would trigger a fearsome rally, I think. A vertical space needle. On the other hand, a rollover is likely to result in more rangebound mush. Breaking below 4160 could generate a bit of a downdraft to trend support, now rising at 4145 at 5:45 AM in New York, to 4155 at the close this afternoon.

tvc_3c358d7393d25fbede863e74844cd5fb.pngClick to enlarge.

As always, the benefit of the doubt goes to the upside resolution scenario until proven otherwise. Although I don’t see a reason why it would do other than stay in the current channel and work gradually higher.

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This is a syndicated post, which originally appeared at Stool Pigeons Wire at Capitalstool.comView original post.

 

Swing Trade Picks For Week of April 19, 2021

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