MasterCard ($MA) : Bearish Tweezer Top

MA_TweezerTop_Bearish

MasterCard ($MA) has been lagging behind its competitors in many areas in the market. More importantly, in the areas of innovation and new markets, it is now facing competition not just from traditional competitors like VISA but also the likes of PayPal, AliPay etc.

The chart shows a bullish run up of MasterCard with good strong volume breaking out of the thin Kumo resistance with a gap.

What troubles me is the candle reversal at the top. Almost the very next day after reaching its peak, $MA reverse at the same peak price level and the bears seems to be taking hold of the situation and reverse the whole gains in the same day. It could be short term traders cashing in their profits. After, a sell down could easily push it to the low $80 range.

To quote Bulkowski definition on Tweezers Top:

Tweezers top candlesticks are simple to find in a historical price series. Just look for two adjacent candles with the same high price in an uptrend. Candle theory says that the pair is supposed to be a bearish reversal because it illustrates overhead resistance, but my tests show that tweezers tops actually act as bullish continuations 56% of the time. That performance is, of course, near random. Thus, expect the breakout to be in any direction. With an overall performance ranking of 81 (where 1 is best), that suggests the price trend after the breakout is weak.

Trade with care.

 

$AAPL : Resistance of the gap and weekly kumo

Daily Ichimoku chart of AAPL

$ AAPL rises from the lows of $390 till $500 on news that Ichan has acquired stakes in it.

On the daily Ichimoku chart, it would have point to a great bullish move.

However, with the announcement of the iPhone 5c and 5s, it seems that the market has price in the lack of innovation on the Ichimoku chart.

Weekly Ichimoku Chart of AAPL

We can see a gap down on the daily chart. More importantly, the price remains below the kumo on the Weekly chart.

Clearly, this suggests that the major bullish trend is over for $AAPL.

The growth of the mobile device is hitting a plateau and  the exponential growth in revenue may not be possible in the near term.

For those who bought at $700, it will be a very long term investment if one is going to hold and hope that $AAPL will hit the levels again in the next 1-2 years.

$SPX : Ichimoku Kumo Support

 

For the past few trading days, /ES has been showing signs of consolidation with the price trading within a fairly narrow range.

Today, /ES seems to have shown that the kumo support at around 1390 has hold and the /ES has since bounce off and is trading above the Chikou Span resistance.

However, as /ES is still trading within the kumo, the trend is still not clear. It face resistance at around 1440.

The leading kumo is still trending down; suggesting that the trend is not in place yet.

Looking ahead, the Kijun sen will act as the natural resistance at around 1430. Failure to break at this level will probably see a possible breakdown for /ES around mid-Nov where the kumo support is much thinner.