Trendline Break on BA

May 17th

Mayday, mayday, the market got thumped today. The indexes took a major turn to the downside today, logging their biggest losses this year in wake of the new scandals that the Trump Administration finds itself in. As more details trickled out today concerning the Comey Memo, the market continued to slide on down. This story looks like it may have more staying power than the previous issues Trump has faced, so more uncertainty and volatility may be in the cards in the coming days. The bulls won’t go down without a fight though, so keep your heads on a swivel.

As for today’s signals we are going to go a little outside of the box and look at a new sell signal. Now we are well aware that many folks only like to take long positions, but, what better day to showcase our sell signals then a day when the market took a swan dive? So let’s get to the signal.

CPS5 Trendline Break

CPRM6 is looking for a trendline break to the downside on BA.

Like the vast majority of the market, BA took a big hit today, losing 2.15% once the dust this afternoon. BA has been in a strong trend for months but moved below the 50 SMA for the first time since last September this afternoon. Whenever a stock moves through a major moving average like the 50, it should be taken note of. The 50 SMA was also serving as support which gives adds another layer of confirmation to the move. If this downhill move continues, look for it to test support at $175 next and if that level is broken, things could slide as far as $170 by early summer.

This signal was fired by our Chart Pattern Recognition 6 module, which is one of our most trusted plug-ins to date. Folks have been trading chart patterns for decades and CPRM6 gives this highly succesful method a big boost with automation. CPRM6 uses hundreds of systems and filters to identify over 200 variations of chart patterns. CPRM6 even filters the signals through multiple time-frames to insure that the signals will hold up in any condition. Keep an eye on this one, things could get interesting.

 The products and demonstrations listed on this website are not recommendations to buy or sell, but rather guidelines to interpreting their respective analysis methods. This information should only be used by investors who are aware of the risks inherent in trading. Nirvana Systems shall have no liability for any investment decisions based on the use of their software, any trading strategies or any information provided through other services such as seminars, webinars, or content included in the SignalWatch website.

About the Author

Ryan has been with Nirvana since 2012 and has been manning the trading desk since Day 1. He was one of the founding members of Nirvana's Trading Lab and also TraderSource.com along with Ryan Olson and Russell Casperson. Ryan logged more than 3,500 hours trading and educating live in the Lab. He is also the lead author of SignalWatch.com. Ryan is a seasoned educator and has conducted numerous educational webinars and is an OmniTrader University instructor. Ryan prefers swing trading and position trading. Outside of the market, Ryan has passions for the outdoors, baseball, exercise, coffee, pop-culture and spending time with his family.

Leave a Reply 0 comments

Leave a Reply: