This chart forms part of a larger research note (dated 14 June 2020). None of the information posted here (TV) should be considered financial advice.
Top 40 (J200) | As mentioned in my client note last week, following a very rapid 50% bounce off the March lows, traders should take caution and that returns from then onward would be hard to come by. This past week saw a small unwind of the bullish sentiment with markets having their worst week since March. My current view is that you’re a short term trader, then long entries may not have an attractive risk/reward. Friday’s close was positive, with the candle structure seeing a long tail, similar to Thursday however a period of consolidation may be due. A loss of 48400-48100 would see 47560 open up as a target. Looking back at the first five months of this year, we’ve navigated the broader market well.
1. During Jan-2020 my technical perspective picked up that the Top 40 price action and chart structure was very similar to the August 2018 period. We then saw a drop, with Covid-19 being a fundamental catalyst to drive prices lower.
2. On 18-March 2020 whilst markets were bleeding we were strong advocates of phased buying noting that ‘Red Equals Opportunity”.
Both of these calls having helped manage risk and generating significant alpha. Take caution, because risk happens fast. And not forgetting, know your time frame!
Top 40 (J200) | As mentioned in my client note last week, following a very rapid 50% bounce off the March lows, traders should take caution and that returns from then onward would be hard to come by. This past week saw a small unwind of the bullish sentiment with markets having their worst week since March. My current view is that you’re a short term trader, then long entries may not have an attractive risk/reward. Friday’s close was positive, with the candle structure seeing a long tail, similar to Thursday however a period of consolidation may be due. A loss of 48400-48100 would see 47560 open up as a target. Looking back at the first five months of this year, we’ve navigated the broader market well.
1. During Jan-2020 my technical perspective picked up that the Top 40 price action and chart structure was very similar to the August 2018 period. We then saw a drop, with Covid-19 being a fundamental catalyst to drive prices lower.
2. On 18-March 2020 whilst markets were bleeding we were strong advocates of phased buying noting that ‘Red Equals Opportunity”.
Both of these calls having helped manage risk and generating significant alpha. Take caution, because risk happens fast. And not forgetting, know your time frame!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.