The Market Technician

This coming Tuesday, 13 Oct 20, we will sharing with the trading community how we apply Wyckoff Methodology trading the markets and how this hundred years old technique continues apply in our current market conditions.

  Gold is expected to see further upside with 1st resistance at 1955, also a key resistance for gold, as the level being a previous consolidation area.   We can expect further upside when gold breaks above 1955 with first resistance at 2000, next at 2089, previous high.   The breakout is favored by Wyckoff traders as supply eased with demand building up , which lead to our FFI reading improving and turning positive .   On the macro end, probable new stimulus and a dovish US FED policy favors gold trading higher. Price trading below 1875 will falsify our analysis *Blog Disclaimers apply.

Bullish Expectations Continues for BTC There are many techniques written on price action (price and volume analysis). Wyckoff Method is one of techniques that relates price action with demand and supply.  New to TA trades may be shaken out of the trade after observing the wide red sell off candle (or bar), bearish engulfing pattern. However, Wyckoff principles denotes the action as bullish. Compared to the previous wide green candle, where he volume is large but the red wide sell off volume is about just half which translate to weak supply. Thus, despite BTC is currently trading in range, demand and supply continue to suggest Demand > Supply. Expectations remains on the upside. But as Wyckoff traders, we are always on the alert for any incoming supply. 10,500 is our downside pivot. Cheers.

Richard Wyckoff Method is a comprehensive market analysis technique that consist of laws, market structure (cycle) principles and trading approach.  There are many technique and strategies that track and analyse trends but few analyse the range itself that produce the trend.  Coupled with the core Law of Supply and Demand from Wyckoff Methodology,  BTC showed that Supply has weaken and Demand gaining strength , in line with our Fund Flow indicator (FFI) observations.  After testing supply in phase C, we expect demand to continue building up from here and enter in Phase D, where we are likely to see a breakout of the range, 10,000 as breakout level (Creek).  Despite strength in demand, we continue to be open-minded and watch for any sign of supply. 

Today's Chart Forecast Chart Amid negative COVID-19 news and lock-down announcements,  S&P 500 traded upwards as forecast. Financial markets moves somewhat in a different pace with the real economy. Technical analysis and demand supply studies provide helps bridge the gap. 

Bullish Continuation Expected for S&P 500 S&P 500 broke out of its down trendline and then saw Sign of Strength (SOS) , breaking above its resistance.  With the bullish character , we expect the current short term demand>support situation to persist, trading towards 2850 resistance area (FIbo 61.80% area and previous support level.  However, 1 sign of cautious is the volume . We like to see more volume as index trends higher. If volume remains at current rate, we may see trend reverse. Disclaimer applies.