Chart Patterns to Watch This Week 7-28-2019


Chart Patterns to Watch This Week 7-28-2019 — with David Moadel what’s up folks it’s David Modell it is
looking at the markets it is the weekend and I want to prepare you for the coming
week with some charts that I’m looking at right now and stick around till the
end I’ve got a bonus chart for you at the end and a free webinar coming up on
Wednesday and I’ll put the link in the description below this video for that
free webinar but I’ll tell you about it at the end and let’s start with some
charts what do you say we’ll start with American Airlines airlines are starting
to get interesting well I don’t know if it’s interesting in a good way because
look at the size of that red candle there in American Airlines now this is a
textbook example of why I apply the three trading day weighting rule when it
comes to if I see a big big down day all right because what often times happens
after that big big down day you get a medium-sized down day all right and then
a smaller down day so yes the candles the red candles get smaller and smaller
oftentimes not always okay but oftentimes but they’re still red I don’t
want to buy a falling knife I don’t want to buy something that’s still falling so
this is a textbook example huge red candle and then a medium-sized red
candle could be followed by a smaller one yeah I don’t know but I’m gonna wait
at least three trading days before I even consider looking at this thing
again alright and we do have a downward channel so I’m not a huge fan of buying
into downward channels although if it gets close to the bottom of the channel
at least it’ll be at a pretty good price for American Airlines I mean it is a
huge airline it’s not a small company it’s a large cap so if it starts to get
into the 20s it’s going to get interesting but anyway I’m applying the
rule about waiting for sure let’s get into canopy yeah we’ve had
this symmetrical triangle for a while and with symmetrical triangles
what have Benzes if it breaks up out of it
strongly then technicians tend to consider that bullish and if it breaks
down through the bottom the resistance line then that’s often times considered
bearish by technicians so it happened and you can see the candle the red
candles got bigger and bigger but now in the past week or two it has started to
go sideways so at what point can you say okay enough is enough I get it it broke
down below the symmetrical triangle trendline at what point can you start to
think on your own and think okay you know what let’s look at the fundamentals
of the company is it still a good company it’s going sideways is the
bleeding stopped you know my friend rich from Canada from rich TV live and you
can check out the previous video to this one in which we talked about you know
how this sector might have bottomed out already and might be ready to start
coming back up I’m not against taking a position in
canopy at this point not a huge one but yeah I’d say that the price is lower or
is closer to the bottom than the top that’s for sure so the risk reward isn’t
too bad here so if somebody wanted to start accumulating a small amount and
then accumulate more as it gets closer to 30 let’s say not a terrible idea you
could even sell a cache cover to put option if you’re able to do that so yeah
I’m not going to give a lot of buying signals in this market which is
expensive but this could be one of them if you want if you wanted to buy
something that could be a possibility if you’re into that sector it is a risky
sector be aware of that it’s speculative all right it’s not like it’s not like
coca-cola stock or McDonald’s it’s not a safety set sector at the moment at least
all right Microsoft you know talking about a little bit more safe companies
it’s funny Microsoft used to be a volatile risky stock at one point in
history now it’s considered more of a safety stock and you can see why I mean
it just keeps going up and up and up and that’s why I’m not buying here you’ve
got a rising wedge here and it’s right near the top a very strong resistance
line trend line here at the top of this wedge I mean every time it hits it it
just it’s resisting you know 1 2 3 4 5 like 6
data points here on this resistance line now the resistance line is rising and so
you can buy at this point and hope that it keeps rising
I’m not into hope that’s not my thing so I’m not gonna buy here if anything I
wouldn’t mind taking profits there if I had shares all right let’s take a look
at that China FXI the iShares China large cap ETF and you’ve got a
symmetrical triangle here will it break up or down through it that’s the
question it’s right in the middle I don’t like to do things right in the
middle I don’t like to bet long or short just be aware that there is a
symmetrical triangle going on if you’re into China shares and you know just see
which way it goes all right we’ve got CVS which I think I think this thing has
been oversold for a while now and this multiple bottom has has borne out my
thesis on that all right we’ve got one two three four five data point six if
you want to count this one five five or six data points where it confirmed this
mole not triple but multiple bottom here on the other hand you know you got a
channel down but it how meaningful is this channel when you’ve got only two
data points on this resistance line and and you got one here and then you don’t
have another one until way back here last year so I don’t necessarily view a
a support or a resistance or other trend line as being strong when you know
you’ve got so much time so much space between the data points I don’t view
this as being super super strong here I view this multiple bottom is super
strong look how many data points it has on this okay and they’re fairly recent
they’re all this year since March or April so I don’t view this as being a
really intensely meaningful channel i I see this sideways action and starting to
come up is more meaningful so you know I kind of like it at this price if you
want to start accumulating and then or wait until it’s 50 if you want to really
want to go with the the multiple bottom here I don’t blame you could sell a put
option as well cash covered always don’t please don’t don’t don’t sell anything
on margin for goodness sake if you can help it you know we’re not looking to
borrow money here from a broker too to make any trades all right don’t do
that please Gilead Gilead Sciences drug manufacturer you’ve got a fairly
consistent one two three four data points on this
you know multiple bottom trendline here at 62 almost exactly 62 you got a rising
channel hasn’t been in effect for very long you only have two data points here
on the support only two well okay three data points but this one’s sloppy on the
resistance and it’s only trending up very slowly look I’m looking to buy at
62 if it gets down there that’s what I’m looking at Amazon one of the more
expensive stocks in the stock oohs fear it’s right in the middle of this rising
wedge you know I I don’t blame you for taking profits anywhere around 2000 it’s
at 1943 you know what if you have any profits at all I wouldn’t mind taking
profits here and waiting until it gets to the closer to the bottom of this
rising support line here not a super strong support line either only two data
points and one of them was last year a lot of space between them I just think
it’s an expensive stock I like the you know the company is huge they’re a
monster but so much of their of their growth has been priced in its a 2,000
dollar stock I don’t know and the p/e ratio is not super favorable on that one
I would just wait for lower prices that’s me I’m a cheapskate and proud of
it all right look at how bounce off of this one and
as far as this ascending triangle goes and Netflix yeah it said it better I
wish you know you guys had bought it at around 300 310 would have been nice
could you buy it here now it’s it’s not a great price it’s shown that it’s
capable of going much lower I’m not buying it here and just be aware that
there is a fairly strong you know resistance here at 380
it’s a 335 I don’t love buying it here I’d rather you buy it here than at 380
that’s for sure but you know 310 was was the time to buy it so no I’m not really
buying that necessarily right now you got your Facebook leave
has been in the news a lot you know I might buy some of that might buy some
Libra coin when it comes out because it’s going to potentially introduce
cryptocurrency to 2.4 billion Facebook and whatsapp and Instagram users could
be huge as far as Facebook itself rich from rich TV live told me in that
previous video which I encourage you to check out that it’s gonna be the
potentially big for Facebook as well yeah okay I won’t argue against that am
i buying here no it bounced hard off of that resistance there Facebook at 200
I’m not a buyer Facebook at 170 or even 180 I could look at that possibility neo
the Chinese Tesla as they say I like it at this price I know it’s been trending
downward but if if you want to buy this just as a long-term thing as a bet on
the electric vehicle Asian market because I think it’s part of the culture
that they’re not huge into buying Tesla’s over in China they tend to shop
you know they tend to buy what’s what’s Chinese you know if they’re in China all
right they’re not like us in America that we’re gonna buy a lot of their
stuff we’re gonna buy a lot of foreign cars the Chinese culture from you know
and tell me if I’m wrong please in the comments but from the research I’ve done
they tend to shop more more locally more nationally so they’re I don’t think
they’re gonna buy a lot of Tesla’s and with so much pollution increasing
pollution in China I believe the electric vehicle market is going to
expand and I think they’re gonna be more apt to bind neo than let’s say Tesla or
anything not you know local to to the Asian markets so it’s been going
sideways you can look at this as a kind of a sloppy double bottom here which
played out it went up or even as a cup and handle if you squint your eyes if if
this is the cup and this is the handle so on a technical level not bad either
if you have to buy anything I’m talking about today you know you don’t have to
buy you got to make your own decisions alright I can’t tell you what to do or
what not to do but I believe you know neo for the long term alright and here’s
your bonus chart I promised can you guess how many nations around the world
are cutting interest rates right now yes or did you cheat and look at the
chart okay it’s zero zero central banks around the world are
I’m sorry hiking I said the wrong thing uh yeah how many central banks around
the world are hiking interest rates zero it’s zero unbelievable what a strange
time we haven’t seen this since around 2012-2013 and then back during
recessionary times alright so I you know there are some that are cutting there
are plenty of them on hold and none of them are hiking what a strange strange
situation we’re in what strange times huh well we’ll see what this grand
experiment leads to you know could the market go up a little bit longer at
least until election time that’s what the government right now is probably
hoping for some people in the government at least alright so there you go just a
little bonus chart for you and kind of a bizarre situation we find ourselves in
in the world all right I promised you yeah I’ve been talking about this one
you know Wednesday it’s coming up soon in a couple days free webinar link is in
the description below this video just you know go to that website put your
email address in register I’ll be there the trend spider team will be there
talking about charts and cool tools when it comes to charts and some tips and
strategies as well all right coming up soon coming up in a couple days
Wednesday 6:30 p.m. Eastern Time I don’t know where you are you’re gonna have to
adjust sorry guys in terms of your time zone but check it out why not it’s free
you got nothing to lose alright hey I really appreciate you guys thanks a lot
and hey I’ll talk to you again soon

9 thoughts on “Chart Patterns to Watch This Week 7-28-2019”

  1. We are going to Shout it from the Roof tops David "3 Day Trading Rule" how importanted it is to stick to it. Great Analysis as usuall Buddy 👍👍🙂

  2. Thanks again David for your excellent insights, love to join the webinar but it will be late UK time and I have to keep doing my slave job the next day, but I’m going to trade for a living soon as I’m doing some great courses in London with forex and general other trading, regards Gary

  3. Just moved. No internet yet. No movers either. I like Nio here, have been watching too. Not a big airline stock follower but someday need to expand my horizons. Son just had a run in with a deer early this a.m. driving home …gotta rent a car. Always something. Maybe I will get to trade next week. Your inflection and ideas always keep me coming back for more…just need more time. MSFT way too high, I agree. I still think it's coming down b4 ex div date. I sold all mine. Thx for your time and talent.

  4. As always great video David. There are always some nice nuggets in you videos. Love them and keep them coming. Great service to the community.

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