The chart below provides a fascinating example of how the price gets trapped between strong Gap Support below and Gap Resistance overhead and behaves like a ping pong ball. 1) A big Gap Up occured on 3rd Jul followed by a big decline on 8th Jul. The price retraced to produce another big Gap Up on 10th Jul that sits right below the former Gap. 2) Price gets sandwiched between the two gaps, Gap support below and Gap resistance above. For the next 7 days, the price seesaws bet

The weekly charts of Gold and Silver have spoken clearly on a bullish trend reversal, even if temporary. Lets look at the finer details. GOLD weekly chart - 1) Bullish Engulfing 2) Double Hammer 3) Sell Failure 4) Low at Horizontal Support The Double Hammer Bullish Engulfing candle on the weekly chart shows up as a Double Bottom pattern breakout on the daily chart. SILVER weekly chart - 1) Bullish Harami with the low of the candle above previous week's low 2) Strong Sell Fail

Last Thursday, Nifty gapped up in the morning and eventually broke out from a range triggering a buy signal. However, by the afternoon, it dipped back into the range closing the opening gap, thus producing a buy failure. A similar setup occurred on 7th of May this year, that resulted in a steep decline of over 1K points over the next 4 days. Banknifty had a similar buy failure last Thursday after breaking out from a range the previous day. Midcap Index had a 1-2-3 breakdown o

Last week has been very volatile with the US indices swinging violently in both directions. However, the charts have spoken - the market seems to reject higher levels and is turning weaker by the day in the last week. Here is a round up of the major global indices- DJIA daily chart - Big Reverse Hammer after making an ATH last Thursday. A prominent buy failure and a strong sell signal. However, the close on Friday is still in the middle of a congestion support zone. Needs to

After months of sideways price action with a bearish bias, gold and silver have given a bullish signal on their respective weekly charts. Copper has given a strong buy signal in an uptrend. Bitcoin has formed a strong bottom. Here is a short technical interpretation of the price action on the weekly charts for metals and Bitcoin Silver has formed a strong hammer at a double bottom Gold has formed a weak hammer, but after a sell failure, making the signal strong Copper has fo

The markets have ended the week on a bullish note across most of the world financial markets, after a breakdown scare the previous week. Most of the markets show a SELL FAILURE on their daily/ weekly charts, one of the strongest technical signals for the bulls. Below is a roundup of the major indices around the world. 1️⃣ DJIA - Big Green Bullish Engulfing on Thursday on the daily chart after finding support in the middle of a narrow congestion zone. Ready to test the previou

DJIA formed a big red Bearish Engulfing candle last Friday following a strong green candle the day before. The candle made a new ATH earlier in the day, before crashing by a relatively modest ~ 1.35% for the day. However, the pattern that it formed was a buy failure as the previous day's candle was a buy signal that failed. This is a very potent sell signal as it catches die hard bulls on the wrong foot, even more lethal when it happens at an ATH. If what looks likely materia

Nifty gave a strong sell signal last Tuesday on the daily chart - a Bearish Engulfing candle on the next day after a breakout. A typical buy failure that traps the bulls on the wrong side and can go in the opposite direction big and fast. The result manifested itself last Friday with Wednesday being a narrow range day and Thursday being a market holiday. The price fell violently in the last 30 minutes of trade to make a big red candle that closed near its low and in the middl

DJIA has formed a big Bearish Engulfing pattern last Friday and closed near the lower boundary of a 7 day long congestion. Nasdaq and S&P have formed Big Bearish Engulfing candles on their daily charts after reaching ATHs a day earlier. The above picture, in itself, does not suggest a sell, but calls for caution ahead. Is this the first sign of capitulation after a relentless rally in the face of a raging war? Looks so if one puts is in the perspective of overall global weakn