Chart Patterns to Watch This Week 11-30-2019 — with David Moadel everybody welcome to looking at the
markets with David McDonald I want to show you some of the charts that I’m
going to be looking at for the coming week to help you to get prepared and to
know what’s on my watch list and I want to thank you right now for
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channel and keeps me going alright so let’s look at some charts hey we’re
already looking at a chart Starbucks yeah is it just me am I seeing things or
is there a head and shoulders little teeny tiny head and shoulders pattern
there see you guy I’m sorry inverse I should say inverse head and shoulders a
regular head and shoulders would be bad news right potentially this one is
potentially good news you got the shoulder and then the head which goes a
little bit lower and then the shoulder which should be about the same as this
one and could the next move be up well I’ll tell you what yeah this was not
meant to be a hundred dollar stock in 2019 could be in 2020 though I do like
the way it is starting to not go down so much a head and shoulders at least is a
sideways pattern so yeah it could start to curl up I’m not against take in a
position here I mean it just went up too much too fast this year and it needed a
pullback but it’s starting to curl and I like the direction it’s going alright so
hey not a terrible time to take a position at least a small one in
Starbucks and here’s another one this just goes to
show how interpretive these patterns are I mean is this a head and
shoulders pattern kinda sorta alright you could look at it this way I look at
it as breaking out of a long narrowing falling wedge
I guess wedges are always narrowing otherwise it wouldn’t be a wedge would
it so yeah it broke out of it it’s still above the falling wedge that’s
encouraging it’s at a low price I like that CGC under-20 and definitely
under-19 I think that’s a pretty good deal this was a $50 stock it wasn’t
meant to be there not this year but I don’t see why it couldn’t possibly get
there next year so if you’re willing to hold on to it for a while I
I like it at this price all right so it’s out of the following wedge that’s
worth something we’ll find out soon enough what it’s worth right Nike nke
all right we got a cup and handle here I’m seeing all kinds of patterns are you
seeing them cup and handle that’s supposed to be bullish do you think it’s
bullish well technicians tend to think that way okay yeah it wasn’t meant to be
a 96 97 dollar stock okay not right now so it had to retrace it had to pull back
after just a crazy run-up from 78 to 96 97 that’s too much too fast so it had to
pull back now it’s coming back up I’m not ready to buy here I want it lower
that’s just me out because we’ve got a big fat channel here big wide channel I
want to see it closer to the bottom of the channel it’s still closer to the top
so a cup and handle yeah could be powerful but the channel to me is even
more powerful at least in this case now if I’m gonna recommend buying anything
and don’t buy anything until you’ve researched it don’t buy something just
because I recommend it okay or anybody for that matter Dollar Tree yeah I mean
I think this is overdone I really do and it’s coming on upon a what could be a
support level here I mean it’s been down to 90 almost exactly 90 before also this
is a good example of the three day waiting rule which I
about so much I mean after this huge gap down what do you do do you buy the next
day or the same day well I tend not to want to do that and yeah you got to read
candles afterwards so it just goes to show you may want to wait till starts
curling sideways or better yet upwards a little bit at least but if it hits 90 oh
and by the way this gap down was on big big volume as you can see from this
volume bar here volume bar here so you know I’m gonna wait but if it hits 90
yeah that’s that’s pretty good price it was a good price here very good price
turns out all right so if I’m gonna recommend anything but yeah 3-day
waiting rule okay so and don’t start that three-day clock until this thing
started stops falling all right wait for a doji candle or a green candle would be
even better so you got Disney isn’t it funny how for years and years Disney was
a safety stock that didn’t move that much but because of Disney Plus because
of the streaming aspect now it’s a mover it’s not a safety stock anymore so much
as a Momo huh momentum stock now Disney who would have thought right while
streaming has changed everything it’s changed entertainment as we know it and
so this is more news driven than chart driven but if we’re going to look at the
charts I mean it broke above this resistance line
but it’s just kind of hanging out there and it’s expensive so I’m not gonna buy
it here but if you’re just a pure technician yeah broke above resistance
whatever that’s worth I’m not buying though not that price whether I like the
company or not is a different story on a fundamental level at least Chipotle not
the cheapest stock in the world but this is the market telling us it’s a multiple
top markets telling us yeah we’re not ready to pay 850 for this
yet and it’s coming back up to it boy whatever you do please sell it 850 okay
because the market could you know it established a ceiling here that’s
where’s clear resistance you know until it breaks through it and considers its
support you know meaning it bounces off of it once or twice
that this is a support level and not resistance whatever you do I recommend
taking profits here I’m not buying up here yeah at least you know not not at
that price overstock this is a mover can you tell look at the size of those
candles my goodness gracious smaller candles now so it’s starting to
settle in but this is almost CH artless or at least directionless how do you
interpret something like this if somebody hands me a chart like this if
I’m coaching somebody they say Dave what do you think of this chart I say I don’t
I I have no thoughts about it because you can’t do anything with something
this random and this volatile also I’m not into buying something that was 30
and not much later is now 759 I’m just yeah not feeling it sorry it’s
interesting though that’s a gamblers or speculators stock
at least for now Amazon man expensive expensive an
eighteen hundred dollar stock but you know I say that and yet it just every
year seems to keep going up what do you got to do with it I mean you got a a
support level here for sure bounced off of it once twice three data points here
since the summer so that’s pretty pretty strong pretty powerful if it gets down
to 1700 I’ll certainly look at it I’m afraid to buy such an expensive stock
and it’s hard for people to be able to afford it maybe with options you know
call options call spreads that kind of thing be careful with those though don’t
trade options unless you really know what you’re doing and I do coach people
on that the one thing that’s just hated right about now I’ve noticed that bank
stocks I didn’t put Bank of America up but if you want to do that on your own
you’ll see how bank stocks are in favor now
everybody loves the bank stocks and so they’re expensive and what does
everybody hate now and that means I love it because it’s sector rotation that’s
how it works what’s hated today will be loved
tomorrow probably xop the oil oil exploration and production stocks are
certainly out of favor they’re down to a pretty
strong support level here one two three four maybe a fifth data point here
depending on what next week brings us it’s right there
if we call $20 a support level on the other hand it’s a falling channel but
I’m not against buying here I mean we could have kind of a bid notice it’s
double bottom here by the way so you know this could be support here it’s
kind of looking that way I wouldn’t be against buying here yeah I don’t love
buying in channels that are going downwards but that I think this is
overdone so it I mean it’s not it’s not as if the price of oil has gone down
from you know gone down to 40 or 30 per barrel you know it’s the price of oil is
being it has been between 50 and 60 for a long long time the almost this whole
chart here the price of oil has just been going sideways within a range
I mean while the you know the xop ETF has just been going down and down and
down I think this is market rotation I don’t see any real need for this so I’m
not against buying it for a long term buy and hold and Bitcoin I haven’t
talked about Bitcoin in a you know a little while this is all this is hard to
interpret you know fin vis I’m using fin viscom
they didn’t draw any lines here but there’s kind of a channel going on here
it’s kind of trading within a channel it’s going downwards in other words
lower highs lower lows so I’d like to see this thing start going sideways
curling upwards would be nice so yeah this is a tough one because it’s not a
company it’s a currency and it’s not a traditional currency either harder to
trade just based on fundamentals but you know if you’re into the Bitcoin having
event h al v ing which is set to happen in May of 2020 the last two times the
miners rewards got cut in half Bitcoin went up went up a lot not
overnight but it did so hmm some of the thing about that’s not related to the
chart that’s just my thoughts on Bitcoin so there you go all right so if I’m
gonna recommend anything I would say dollar store Dollar Tree yeah yeah I
think this is overdone so mmm I don’t know it’s tough to find bargains in an
expensive market that refuses to go down I’m looking forward to it going down
call me sadistic yeah are anyway thanks a lot for clicking on those sponsored
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thank you so much for watching and listening I’ll talk to you again soon