Now Facebook (FB) is Souring

Shown is the weekly chart of the social lovers, the Facebook, known better in the socials as FB. From its IPO in May of 2012 at a price of $42?, its drops to a mere $18 after five months. And from then, and after almost a year of consolidation, it formed a 'cup with a handle' (a Wall Street lingo, that means a bullish trend is in the offing), though the handle was a little bit extended. Looking at it right now it is souring, and Mark Zuckerberg must be 'zucking' his thumb with cash!

Friday's Trade Setup

Been a while not posting in this blog for the market most of the time giving you feel not to do something or not giving you great ideas what or how to participate especially the past weeks because of uncertainty in the  market. I phrase uncertainty or unpredictability because the market (or Mr. Market) make its move in uncertain ways, in an uncertain time, and in uncertain day. Like the chart(s) below:

This 15-min chart of Crude is zigzagging in the overnight session until it reverses and leap vertically in the regular session. Notice that resistance level (the line below), it is a powerful point where the market bounced opening for an entry above that trend line (above). If you understand the trend(s) as what Trader Vic of the Wall Street Master implies, you can have an idea how to make/put trades, and this is one of his example, the change in trend.

For the Gold 30-min chart second below, it made a tight consolidation in the overnight session for its powerful reversal. Price action and level observation (the support/resistance) is the right approach to deal in this kind of trade.

 

 

Tuesday's Trade Setup

A nice triangle formation from the 15-minute chart of the Gold futures contract in today's market. Spotting this kind of setup or formation needs keen understanding of the price action as well as the bars formation relative to multiple time frame. This is where pattern recognition in trading the market is a must for discretionary traders.

Labor Market

No market today for it's holiday, but the futures markets are open because it operates electronically. The indices (Nasdaq, NQ) were all gap up today, but the Crude and the Gold were gap down. The Nasdaq formed  a deep cup with a handle pattern. The Crude formed a small double cup but minus the handle (not able to sustain the load and it bends). While the Gold made a reversal forming a 'u' pattern like. All are in 15 - minute chart frame.