Author Archive for kimblechartingsolutions

Bitcoin Parabolic Rally Reversal Faces Big Support Test!

Courtesy of Chris Kimble

One of the biggest breakouts of 2020 came by way of Bitcoin. And it was epic.

The coronavirus crash saw the cryptocurrency retest its 2018 lows before rocketing higher in parabolic fashion.

Did Bitcoin Peak? What’s Next?

Today we examine a “weekly” chart of Bitcoin, highlighting its parabolic rally… and recent reversal lower.

The rally in Bitcoin surged all the way to the 361% Fibonacci extension level at (1) before creating the largest bearish reversal in years.

In just a few weeks time, Bitcoin is testing its 261% Fibonacci level near 31,000 at (2). This is a big test of support for the cryptocurrency. A “weekly” closing below this support level could bring a decline all the way to 20,500 and its 161% Fib level at (3). That would be a full retest of the 2017 highs!

What bitcoin does in the days/weeks ahead will be important for traders. Stay tuned!

This article was first written for See It Markets.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





S&P 500 Testing Top Of 30-Year Rising Channel, Says Joe Friday

Courtesy of Chris Kimble

Do charts have memories? Can prices as far back as 45-years ago impact prices today? I understand if you answered both questions with a resounding no.

In my humble opinion, an important test of these questions comes into play at current prices in the S&P 500 at (1).

This chart looks at the S&P 500 on a quarterly basis since the late 1950s, where Fibonacci was applied to the 1974 lows and the 2000 & 2007 highs. The 261% Fibonacci extension level comes into play at (1), which is the 3,900 level in the S&P.

At the same time, this price test is coming into play, the S&P is testing the top of a 30-year bullish rising channel at (1).

Because a dual breakout test is coming into play at (1),

does it mean that a strong bullish trend has to come to an end? Nope!

One this is clear, should the S&P 500 breakout at (1), it sends a strong bullish message!!!

Joe Friday Just The Facts Ma’am; Bulls would receive a short-term caution message if selling would happen to start at the dual breakout test at (1).

To become a member of Kimble Charting Solutions, click here.





A Repeat Of The 2000 Dot.com Highs In Play?

Courtesy of Chris Kimble

Since the 2000 tech bubble and crash, tech stocks have regained their leadership form. Especially large-cap tech stocks.

Headlines have varied in focus from the “4 horseman” to “FANG” and “FANGE”, but one thing remains: Large-cap tech stocks have been the bull market leader.

So what about when large-cap tech lags the market? Not so good.

In today’s chart, we look at a “monthly” chart of the performance ratio of the Nasdaq 100 Index to the Nasdaq Composite. It’s basically a look at how large-cap tech stocks perform against the broader tech stocks world.

As you can see, this ratio peaked out in 2000, bottomed in 2002, and has been in an up-trend ever since. That up-trend has been formed with higher lows, creating a trend line that has yet to be broken.

Are Tech Stocks About To Head Lower?

Last summer, large-cap tech’s out-performance pushed this ratio back to its 2000 high at (1) before turning lower. That turn lower has turned into several months of under-performance and has the ratio testing its bullish trend line support at (2).

How large-cap tech stocks fare here will be important, as solid trend support is at hand!!!  As a market leader, a breakdown in large-cap tech stocks would be very bearish for bulls. Stay tuned!

This article was first written for See It Markets.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





Treasury Bond Yields At Make-Or-Break Decision Point Says Joe Friday

Courtesy of Chris Kimble

Treasury bond yields (and interest rates) have been falling for so long now that investors have taken it for granted.

But bond yields have been rising for the past several months and perhaps investors should pay attention, especially as we grapple with questions about inflation and the broader economy (and prospects for recovery).

Today we ask Joe Friday to deliver us the facts! Below is a long-term “monthly” chart of the 30 Year US Treasury Bond Yield.

Counter-Trend Rally In Yields Facing Strong Resistance!

As you can see, treasury bond yields have spent much of the past 25 years trading in a falling channel… but the coronavirus crash sent yields sharply lower and out of the channel. A spike bottom took place and since then, yields have slowly been rising.

So what’s the big deal? The counter-trend rally has bond yields testing an important confluence of resistance at (2): The underside of the falling channel, its near-term downtrend line, as well as the 38.2% Fibonacci retracement level.

So is inflation and economic growth back in play? What yields do at (2) will most likely answer this question. Stay tuned!

This article was first written for See It Markets.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





Doc Copper Suggesting Economic Growth Peaks Here?

Courtesy of Chris Kimble

The broader commodities market is enjoying a multi-month rally that has seen momentum carry over into early 2021.

One area of commodities that’s seen a big lift is the metals space. We hear a lot about gold and silver, but how about copper?

One look at today’s chart and it’s clear that Doc Copper is on fire.

The long-term “monthly” chart highlights Copper’s multi-month thrust higher. It also shows Copper futures prices hitting a significant band of triple resistance this month. Line (1) has been tested several times over the past 15 years, while resistance at (2) is made up of 61.8 Fibonacci resistance as well as the top of the rising channel.

So what will Doc Copper do with this 800-pound test of resistance?

Well, if copper succeeds in breaking above this band of resistance, it will likely mean blast off for copper and copper stocks like Freeport McMoran (FCX).

What is the message if Doc Copper starts seeing selling pressure at (2)? It would suggest that the counter-trend rally is running out of steam and that numerous commodities could experience short-term selling pressure. Stay tuned!

This article was first written for See It Markets.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





US Dollar Collapse, Crude Oil Skyrocket About To Happen?

Courtesy of Chris Kimble

Is the U.S. Dollar about to collapse? Are Crude Oil prices about to skyrocket?

Well if these price movements are to take place, 12-year trends have to change!

Since 2008, the US$ has created a series of higher lows and higher highs inside of rising channel (1). At the same time, Crude Oil has created a series of lower highs and lower lows inside of falling channel (2).

Counter-trend rallies by each have the US$ testing support and Crude Oil near resistance, at the same time.

As these support/resistance tests are in play, few are bullish King$ and few are bearish Crude Oil.

The results of the price action by the US$ at support and Crude as resistance in my humble opinion is a VERY BIG deal friends!

What happens here should have a large impact on what assets you should be over and underweight for potentially years to come!

To become a member of Kimble Charting Solutions, click here.





Here’s Why Gold Could Be Headed To $3000

Courtesy of Chris Kimble

In the spring of 2020, I highlighted the potential for a very bullish long-term pattern for Gold.

That pattern was the popular “cup with handle” formation. At that time, it was still attempting to fill out the right side of the “cup” formation.

Today, we take another look at the “monthly” chart of gold and get an update on that pattern.

Gold “Cup With Handle” Formation

Eyes $3000 Price Target?

As you can see in today’s chart, Gold has completed the “cup” pattern and is currently pulling back into what could be the “handle” part of the formation. Ideally, Gold bulls want to see a decline down to the $1550-$1600 level before another big rally begins.

As we noted back in the spring of 2020, the Fibonacci symmetry of this cup formation is very intriguing. Gold peaked at its 261% Fibonacci extension price level in 2011 at (1) and again in 2020 at (2) – this formed the “cup”. And a pullback into the 38.2% Fibonacci of the “cup” formation would be an ideal spot for the “handle” to form.

Does Gold need to form a “handle” before moving higher? Not necessarily… but it sure would help Gold get to $3000 a lot sooner. Stay tuned!

This chart was written for See It Markets.com. To see the original post, CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





The Commodities Rally Hinges on a Euro Breakout!

Courtesy of Chris Kimble

Over the past year, there has been a lot of buzz about rising equities, the surge in Bitcoin, the strength of gold, and the comeback in commodities like crude oil and corn.

But what about the Euro?

It’s just as important and it is a big reason why several of the assets above are rising.

As many of you know, the currency markets have a huge effect on equities and commodities. When the Euro is strong, it’s nearly a foregone conclusion that the US Dollar is weak. And this provides a tailwind to commodities… and a bid to equities. And that has been a reality in the markets for much of the past year.

So will this theme continue into 2021 and beyond?

Depends on how the Euro performs.

Let’s look at the chart. Here we have a long-term “monthly” chart of the Euro. As you can see, the price has pivoted as support or resistance several times off line (1). And all the while, the Euro has traded in a falling channel marked by each (2).

Recent Euro strength has the currency testing BOTH the upper channel boundary and this all-important pivot line at the same time at (3).

So if commodities have the “legs” for another move higher, the Euro needs to breakout!

This article was first published on See It Markets.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





Is the 30 Year Bond Bull Market Over?

Courtesy of Chris Kimble

For the past three decades, one thing investors could count on was lower yields and rising bond prices (due to inverse relationship).

The Federal Reserve was dovish and a competitive market (due to the rise of technology) kept prices and inflation under control. And that equated to a multi-decade bond bull market.

Today we look at a long-term “monthly” chart of the 10-year Treasury Bond Yield.…Inverted! We invert the price on the chart to eliminate bias by providing another way to analyze price action… And in this case, the chart also offers up a perspective from the bond side (due to the inverted relationship of yields vs price).

The Bond Bull Market Is Under Pressure

As we’ve pointed out several times this year, bond yields created the largest “monthly” bearish reversal pattern in the past 25-years at (1).

And understanding that the chart is inverted, we can think of it as the bond market… and price is currently testing the initial reaction low at (2).

Support is support until broken!

This support is critically important and needs to hold to keep bonds in a bullish formation.

The bond bull market is definitely on the ropes… stay tuned!

This article was first written for See It Markets.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





Will Dow Industrials See Decade of Flat Market Returns?

Courtesy of Chris Kimble

Over the years, active investors turn to several indicators to gauge market returns. And these indicators are used over varying timeframes, depending on the data and chart duration.

We often look to price patterns to highlight strengthening trends (breakouts) and trend reversals.

Today we look at a unique indicator and marry it up with a long-term “quarterly” chart of the Dow Jones Industrial Average. The indicator is Equities (i.e. stocks) as a percentage of GDP.

So why is this important to follow? Because when it peaks, it tends to forecast a flat performance for the Dow Industrials… perhaps for a decade or more.

As you can see, the last two times this indicator peaked, 1968 at (1) and 2000 at (2), it lead to flat performance on the Dow Jones Industrial Average for 15 and 13 years, respectively.

This indicator is currently at its highest level in 70 years! Is this a “new normal” or something to worry about? Stay tuned!

This article was first written for See It Markets.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.





 
 
 

Phil's Favorites

Coronavirus variants: how did they evolve and what do they mean?

 

Coronavirus variants: how did they evolve and what do they mean?

Courtesy of Ed Feil, University of Bath

Image by fernando zhiminaicela from Pixabay

When supplies of oxygen at hospitals in Manaus, Brazil, recently ran out, the airforce was called in for emergency evacuations while healthcare workers frantically tried to save lives with manual ventilation. For those that could not be saved, there was only m...



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Biotech/COVID-19

Coronavirus variants: how did they evolve and what do they mean?

 

Coronavirus variants: how did they evolve and what do they mean?

Courtesy of Ed Feil, University of Bath

Image by fernando zhiminaicela from Pixabay

When supplies of oxygen at hospitals in Manaus, Brazil, recently ran out, the airforce was called in for emergency evacuations while healthcare workers frantically tried to save lives with manual ventilation. For those that could not be saved, there was only m...



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Zero Hedge

Gamestop Goes Red After More Than Doubling Just Two Hours Earlier

Courtesy of ZeroHedge

Update (1220pm ET): It was only "natural" that in a market as broken as deranged as this one, that Gamestop - which less than to hours today was up more than 100%, hitting an all time high just over  $159 - is now red for the day, having dropped as low as $60/share. There is nothing one can say here, besides sit back and watch the grotesque farce formerly known as "the market" that the Federal Reserve has created.

* * *

It's just getting more insane by the minute and at last check Gamestop hit a record $159.19 per share, up almost triple on the day and bringing it market cap well above $10 bil...



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ValueWalk

After Your Recent High - Where To Now, Gold?

By Przemyslaw Radomski, CFA. Originally published at ValueWalk.

Gold is suffering a hang-over after it’s early January highs, while the EUR/USD pair is buckling – so when gold declines, where will its bottom be?

Q4 2020 hedge fund letters, conferences and more

The Price Of Gold Fell On Friday

After injecting itself with Janet Yellen’s stimulus sentiment, gold came down from its highs on Friday (Jan. 22).

And like the GDX ETF, it’s important to put gold’s recent run into context. For starters, ...



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Digital Currencies

Ethereum Surges To New Record High As DeFi Boom Re-Accelerates

Courtesy of ZeroHedge View original post here.

Coins that power decentralized finance (DeFi) protocols are soaring recently as bitcoin treads water.

While bitcoin grabbed all the headlines early on in the year, it is the rest of the crypto space that is stealing its thunder most recently as Ethereum, the backbone of the smart contracts that define much of the DeFi space, has drastically outperformed...

Source: Bloomberg

That is the highest for ETH relative to BTC since

...

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Politics

Far-right groups move to messaging apps as tech companies crack down on extremist social media

 

Far-right groups move to messaging apps as tech companies crack down on extremist social media

Far-right groups like the Proud Boys, seen here marching in Washington, D.C., on Dec. 12, are increasingly organizing their activities on messaging services like Telegram. Stephanie Keith/Getty Images

Courtesy of Kevin GrishamCalifornia State University San Bernardino

Right-wing extremists called for open revolt against the U.S. government ...



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Kimble Charting Solutions

Bitcoin Parabolic Rally Reversal Faces Big Support Test!

Courtesy of Chris Kimble

One of the biggest breakouts of 2020 came by way of Bitcoin. And it was epic.

The coronavirus crash saw the cryptocurrency retest its 2018 lows before rocketing higher in parabolic fashion.

Did Bitcoin Peak? What’s Next?

Today we examine a “weekly” chart of Bitcoin, highlighting its parabolic rally… and recent reversal lower.

The rally in Bitcoin surged all the way to the 361% Fibonacci extension level at (1) before creating the largest bearish reversal in years.

In just a few weeks time, Bitcoin is testing its 261% Fibonacci level near 31,000 at (2). This is a big test of support for the cryptocurrency. A “weekl...



more from Kimble C.S.

Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Saturday, 11 July 2020, 05:26:16 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: This is lack of liquidity means support is likely to break if it is tested hard!



Date Found: Saturday, 11 July 2020, 09:51:58 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Nasdaq losing momentum.



Da...

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Mapping The Market

The Countries With The Most COVID-19 Cases

 

The Countries With The Most COVID-19 Cases

By Martin Armstrong, Statista, Jan 12, 2021

This regularly updated infographic keeps track of the countries with the most confirmed Covid-19 cases. The United States is still at the top of the list, with a total now exceeding the 22 million mark, according to Johns Hopkins University figures. The total global figure is now over 85 million, while there have been more than 1.9 million deaths.

You will find more infographics at ...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

http://www.insidercow.com/ more from Insider

Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.