Welcome to the video update for Monday, March 21st. We’ve been following the dragon pattern on the weekly Canada chart since 2009 when the pattern was identified as a possibility. we’ve witnessed price breaking out of the ‘head’ pattern to the upside and now after many weeks, Trader Rick discusses the target of this pattern. Are we there? Trader Rick also takes a look at a 200 tick Canada chart which offered two 9/30 short setups this past Friday. See how those turned out and what to look for next.
For crude oil traders, Monday is the last trading day for the April contract so be sure to roll to the May contract (symbol K) sometime on Monday. Looking at the daily continuation crude chart, what are the longer term moving averages telling us? Things can and do change but being on the same side as the longer term moving averages can improve significantly your profitability. Note the support levels under the market. One note of importance is, according to the commitment of traders report (COT), the commercial traders are NOT supporting this current move up. Something has got to give.
In the stock indexes, the first chart is the S&P cash weekly chart where price is currently in the buy zone. In the event of a selloff, please note the support levels. On the daily S&P cash chart, price tested the fib zone and we are now watching the bounce up. Watch the upper keltner for possible resistance. Last chart is the 2 bar per day, day session only chart and note the pattern Trader Rick talks about. Does this have bullish implications?
Good trading!
Tags: 9/30 Setup, dragon pattern, fib zone, moving averages
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