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August 13

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Market Commentary for Aug 13, 2020

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August 13, 2020


Yes, We are Consolidating.  Now what?

 

“We should Consolidate here…”  Looking at the 39 Minute chart, we see a bounce off Support, followed by a turn back down in the last bar of the session.  Consolidating at highs is precisely what should happen in a Bullish market.   But we are also watching for a break of that upper line,  which would be even more bullish and a great buying opportunity – short term. *

 

DJIA – 39 Minutes 


“Today’s move down could be the start of a Consolidation – sideways movement above 27,600.  If that happens, it will be a bullish indication.”  This is what happened today.  Marked on the 39 Minute Chart are the 2 possibilities for tomorrow – Continued Consolidation or Break.  If we drop through 27,600 however, that would be quite negative.

 

DJIA – Daily

 

“Since the rout didn’t cover much ground, I expect a bounce off Support, and then, perhaps a Consolidation.  But I would be looking to buy UNLESS we push down through 27,600 of course.”  I am including yesterday’s commentary because I really have the same to say today – we should see a move back to 27,600.  If we break it, that’s bearish.  If we move up through the last 2 session highs immediately, that’s bullish.  It’s really about as simple as that from my experience.

 

* I said “short term” above because there are so many factors around this market (price of gold, overseas markets and government action, the continued pandemic, Fed stimulus – the list goes .   Nobody can predict what will happen in the months ahead.  But short term, we can definitely play off these levels day to day.  

 

Ed Downs 

 

 


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