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Megaphonepattern

Broadening Wedge Support TestThe Dow Jones Industrial Average(DJI) closed at $19,989, down -6.3% today and fell below the $20,000 level for the first time since 2016 meaning that stocks have now given back all of the gains made in the past 4 years. The market is now down -32% from the all-time high of $29,568 made on February 12th meaning that it has taken a little over a month to wipe out four years of gains. This is a massive move and the steepest, fastest decline in market history. Traders sold price down below the lower line of the broadening wedge, but ended up closing price above the wedge line indicating that this lower line is acting as a technical price support level as expected in previous charts highlighting this wedge pattern. The lower wick of the candle today shows that traders also sold price below $19,000 during the trading day, but ultimately enough buyers stepped in to keep price above the lower wedge line, indicated by today’s candle body being above the wedge line. There is also added support at the lower red line which stems from an historic level of interest by traders back in 2015 which was pointed out in the previous price chart shared. The hold above these technical levels comes as the US government announced a $1.2 trillion stimulus package which includes company bailouts as well as financial support to US citizens via a $1,000 check in April and a $1,000 check in May. In my previous chart, I expected both a test of the lower wedge line and bounce due to technical traders buying this level, as well as fundamental traders buying stimulus news. Now that we have witnessed both the technical levels being reached and the fundamental stimulus news, I’m expecting more selling as the stimulus package appears to be too small, and arriving too late, in the face of an outbreak that is still growing exponentially. Until more extreme measures are taken to control the outbreak, thus limiting the long-term affect to the economy, traders will remain fearful due to the ongoing hit to company revenue and earnings as case counts rise. The current stimulus package is enough to float markets for two months, but nothing is being done from a health perspective in order to ensure that the virus is slowed, let alone stopped, within two months. We may see a bounce tomorrow and Friday as this technical level and stimulus provide some short-term hope to traders, but the bounce will likely not last as the underlying issue is not being dealt with in a forceful enough manner. As case counts continue to rise, so will traders fear of the governments ability to contain the outbreak with just money. As I mentioned before, if the only tool the government has to fight a crisis is money, then every problem has to look like a money problem. This coronavirus is most certainly not a money problem, it is a public health problem that needs a cure or extreme containment countermeasures to combat. The most important level to watch this week is the lower wedge line as a close below this level would be bearish/negative from a technical point of view and indicate that it is no longer a support level. Traders may also flip back to being fearful that the government’s stimulus is not enough to prevent further hits to the economy. Overall view remains neutral with the expectation of a short-term bounce due to technical support levels being reached and fundamental support via massive Federal Reserve and government bailouts. View will switch back to bearish if lower support levels are breached which is expected as US coronavirus case counts rise.
TVC:DJI
by PrepForProfit
Megaphone Suggests Short Term Distribution - Wait For SqueezeIt made a lower low and higher high which is forming a megaphone pattern at the end of a likely wxyxz. The upshot of this is it's likely an area where BTC is being distributed in the short term which widens the order book. I had a futures scalp from the other day which I have now closed and will wait for it to squeeze again which will show where it is being accumulated. Ideally by the time the squeeze form it will provide enough additional price action to clarify the count because in this area it's quite messy. I am bullish in the long term but this is a place to be flat in the short term.
GEMINI:BTCUSD
by mljones
US Equities in Expanded Irregular Flat correction; Bearish Bat!B-D a perfect Fibo 1.618 extension to 1.05 x X-A in double top. This is extremely Bearish. Megaphone pattern suggests continuation of correction to tar zone ~27600. Might expect a last push to ATH in April after target zone achieved. We got divergence in Transports DJT and Russel 2k RUT, both lower with mixed markets- toppy! This is not investing advice; post is intended purely for education and your wry amusement! Trade with care, GLTA!
DJ:DJIShort
by DaddySawbucks
34
US 30 Bear Trend; If continuation from bear flag pennantEquities forming a pennant. Usually these are continuation patterns. A measured move down from flagtip would expect to make a bottom half of flag-pole equal to top half, for about 1800+ pips; this would drop index near 24200, or a bit less. IMO the Megaphone Trend is still dominant. A breakout to upside is still possible if global events magically resolve favorably; this seems doubtful atm. FOMC will likely be too little too late, as usual. You can see index fell sharply below rising TL, bounced up to retest it, and was rejected. Although another retest is possible, it seems the Bears are gaining traction now. This alternative Bear Theory to compare & contrast with my earlier pub on a Bullish Reversal. If the Bulls fail this will unwind real fast. Still consolidating- caution is in order! GTLA trade at your own risk, this isn't advice, just an idea.
DJ:DJIShort
by DaddySawbucks
12
S&P’s BEARish ResistanceBack in September ‘18, a proper correction took place after a second attempt against this BEARish Resistance. Today, nearly a year later, we are approaching the same level of resistance; what do you think is going to happen? With it’s current range, between the BEARish Resistance and the Red Support Line, a prominent “Megaphone” pattern has formed; usually signifying: “Attention: GET OUT WHILE YOU STILL CAN!” That said, I believe the market is due for a major correction towards the Red Support Line. Trade well my friends.
SShort
by KryptoTradr
megaphone has been formedin weekly chart we can see a broadening formation that suggests a short leg now, there is a possible divergence between price and momentum (10 weeks), if we observe daily chart we can see a lower volume in bull days and higher in bear days. Price will move between 2960 and 3050 in next days, a break below 2960 would suggest a strong sell with first important target at 2700$. The fed will move the markets and could push down wall street, let s see! contact me if you want our signals!! they will be free!!! Francesco
SP:SPXShort
by Dragon_Investments
SPX Expanding Triangle. Pivot pointIn the weekly chart we observe another touch on the expanding triangle. I am trading the following scenarios: 1) Short. If this scenario is right, expect considerable retracement, following the direction of the red arrow. For me, it is the most likely scenario right now, and I am in aggressive short in SPX500 futures, and long in VIX. There is very clear bearish RSI divergence on the weekly chart, in an expanding structure.Stop above 3040 for the following week. 2) Long. If the expanding triangle is broken to the upside, in the retest of the trendline is time to go long. Be ready, this could very well happen. The R:R for this trade is stunning. I will take partial profits if the downtrend is confirmed at important supports. 2967, 2800 and I would turn eventually long with stops below the long term trendline.
OANDA:SPX500USDShort
by blondengineer
AMZN: Top end of expanding triangle Couple of Trump deadlines coming up, the Chinese 25% tariffs and the funding for the wall/slate/whatever. As previously mentioned, I am of the opinion Trump is over promising and will continue to under deliver. He will be reluctant to look like he caved again. Which company will be the biggest victim of higher tariffs and maybe another shutdown? AMZN. AMZN works off low pricing and no prizes for guessing how much of AMZN products are sourced from China. The potentially higher tariffs coupled with weak consumer sentiment mixed with the probability of another government shutdown will be painful for AMZN. Technically speaking, AMZN is:- - hemmed in an expanding triangle formation or commonly known as megaphone pattern. This is a bearish pattern - hemmed in by the 200-days MA - MACD has reversed - the 50-dma, 100-dma are trading below the 200-dma. Pick your favorite version of the death cross, AMZN got them all. Top end risk of c.$1780 vs. lower end of megaphone pattern at c.$1250 gives a c.1:2 risk reward.
NASDAQ:AMZNShort
by WellTrainedMonkey