May 18, 2021
Recently, I was invited by my buddy to contribute to The Weekly Bean, a local publication.
This has inspired me to be more consistent with my newsletter.
This will be my first in a series of Chart of the Day.
Today, we look at the Daily chart of the:
E-Mini Dow Jones ($5) Futures (CONTINOUS: CURRENT CONTRACT IN FRONT
YM1!
While I am bullish anytime the price is above a rising 50 Day Moving Average, it is beneficial to look for signs of cracks in bull markets
I have a rising wedge drawn on this daily chart going back to March 2020.
The green line tracking the price is the 50 DMA.
You can see that the price recently broke below the bottom trendline before buyers stepped in at the 50 DMA.
Price then retested the bottom trendline and got rejected.
This is one of the red flags that I see on my charts and why I am extra cautious with long positions.
As a disclaimer, I entered a long position in DOG, Proshares Trusts Short Dow30 ETF on Monday.
Consider joining my Telegram Group and we can discuss other charts of interest.
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