Daily Technical Analysis is provided by Jason Sen of Day Trade Ideas, who has been day trading since the late 1980’s. Jason has been a contributor of Traders Summit since the beginning. He primarily focuses on providing technical analysis of the financial markets, including stock chart patterns, Forex and Metals setups, and other useful technical analysis.
AUDUSD after last week’s bearish engulfing candle in severely overbought conditions we now have a small shooting star candle after the retest of last week’s high, leaving a potential double top sell signal.
Emini S&P JUNE we wrote: We are now severely overbought on the daily chart & short term charts. Although I think we could drop 100 points there is no sell signal so I cannot recommend a short. If we do head lower (as I think we will), look for 4585/80… A perfect call as we reverse to 4575.
Nasdaq June beat resistance at 14400/500 for a buy signal targeting 14650/680 then 14820/870 & as far as my ultimate target & strong resistance at 15100/15200. Shorts here worked perfectly we reverse from 15268.
Update daily by 05:00 GMT
AUDUSD shorts at 7500/7530 re-target 7450/45 then 7405/7395. A low for the day certainly possible but longs are now more risky after the potential sell signal. Bulls need a break above 7555 to kill the negative signal from the bearish candles. A break higher targets 7630/40.
Emini S&P JUNE reversed from Tuesday’s high as predicted to hit the first target of 4585/80, with a low for the day half way to support at 4565/55. Further losses meet very strong support at 4520/10. Longs need stops below 4495. We could have a high for the 2 week recovery in place now. A bounce this morning obviously meets resistance at 4625/30. However a break above 4640 opens the door to 4660/70 & a break above here is the next buy signal. Nasdaq JUNE tests strong resistance at 15100/15200. Shorts need stops above 15350. A break higher is a buy signal targeting 15500/520, perhaps as far as 15650. Our shorts target first support at 14950/900. A bounce from here is possible. However longs may be too risky. If we continue lower look for 14850 then 14750/700.
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Jason Sen, Director