Sunday, December 18, 2016

EWI: "The Italian Job"

Greetings traders,

We have all witnessed recently the hype of the Italian referendum and the associated rescue plan of the italian banks.
Still lots of bearish news may come up, however we believe that Italy is getting out of the woods following a bear market that started in June 2014.
Why?
Well, you can clearly notice to the following chart that Italy ETF (EWI) has formed an excellent bullish bat pattern starting from July 2012 low and finishing in July 2016 low.

The targets of the Bullish Bat are 
1st target: 26.64
2nd target: 30.5

Now, let us zoom in to the chart....

We can see that EWI following the lows of July 2016 formed a decent bullish Gartley pattern and after completion of the pattern the price zoomed higher towards the current levels.

However, we can see that there is a convergence of multiple resistance lines (AD 0.236 fibo, descending bear market trendline, inverted H&S neckline, pitchfork trendline from the current upmove) at current levels.Therefore we expect some kind of correction or consolidation.
Overall we think that Italy is very bullish, especially for the long-term.
Safe trading!

Wednesday, December 14, 2016

SPX ahead of FED

Greetings traders,
Lately we have witnessed a significant rally for SPX.
Currently SPX is hitting the upper border of its channel.
RSI is overbought at 77.5
We have the FED (miniscule) tightening, already priced in by the markets and Christmas holidays following.
For all the above reasons we believe that SPX will move sideways forming kind of a rounded top and then proceed with a correction towards the midline of the channel.

Trade safely!

Wednesday, December 7, 2016

Renewables: Some promising signs

Hi all!This will be a quick post on renewables.
There is a potential reversal island setup for solar energy etf TAN

Also the wind energy etf FAN is forming a huge cap with handle formation which potentially can produce returns of 35%.

Happy trading!
For more updates follow me in Stocktwits (fiboman)