Good morning fellow traders,
Please find below the most important charts of the day:
The overall market has been faulty yesterday as the morning strength has been sold throughout the day despite good news coming from the ECB meeting and a decent jobless claims number. We continue to advice caution as the market remains choppy. We have lost some momentum as we are below the 8EMA. Futures are pointing to a positive start but given the options’ expiration today we expect an increase in volatility. See if value or tech can offer a hiding place for investors today. Holding above yesterday’s low will keep the bears at bay. A break below it, and we are heading for the 21EMA going into next week. 448.72 is the level to watch for today.
If tech is to act better, $FB’s chart is looking promising as it kept within the recent bull flag and above the moving averages. Keep it on your radar as the movement of this stock will be indicative of sentiment in the tech arena. A strong close above 380 opens the possibility for a new all time high in the coming weeks.
$TSLA is looking constructive above the moving averages as it is attempting to build another bull flag, similar to the one from the end of August. See if it has the strength to take out 764 for higher prices. The next big resistance level is 780. A break below 740 cancels this recent active sequence.
This stock managed to reverse yesterday as it reclaimed Wednesday’s low. It posted an igniting candle above the recent downtrend. In a strong market, this would be considered a Day 1 type of candle. See if it offers any continuation to the upside today.
Have a successful trading day! Remember to stay tactical, book your trades and stay on your toes until the dust settles and we have better set-ups. Difficult to trust this week’s sideways action. Follow us on Twitter for more updates and join us tonight on Instagram and Youtube for our Daily Video.