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Weekly Tech Charts & Report - June 28 - by TradesAfterWork

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Posting this to share with our readers: (We really like these Weekly Technical Briefs by TaW).
The daily chart of the Nasdaq Composite Index below is showing the strongest of the indexes facing a unique challenge. First, the Composite is below its 12 Day SMA, which indicates that it's taking a least a brief rest. Second, it also closed below its 21 Day Exponential Moving Average for the first time since the March 23rd bottom. So what is next? Typically there would be some kind of bounce off the 21 Day EMA, especially since this is the first time the Composite has closed below it, but we will have to see.
The Composite is still the place to be with the trend still up and strong, but with the news driven market and COVID-19, nothing would surprise me, so we are selling QQQ and taking our profits for now. The RSI is at 52.60% on the Composite and has stayed strong since this run up beginning in March. If the Composite is beginning to have some problems continuing up its upward trend, you will see it first when the RSI goes below 50%, so keep an eye on the RSI for any solid changes.
Generally, I don't focus much on the Dow Jones 30, since it is the weakest of the major indexes but since the Dow Jones is what the public generally percieves as "the market" any real weakness here may create pressure on the stronger Nasdaq. This Dow Jones chart is the weekly chart of the index showing its Relative Strength Index (RSI) falling below the 50% mark. I would prefer to see the RSI 50% or above. Often, when it falls below the 50% line, a stock or index begins to have some difficulty in continuing price momentum up. Keep in mind that this is a weekly chart, which means that the intermediate term trend may be eroding some. That along with the index being below its 40 week moving average for the third week in a row is a concern. Buyers are having some challenges with the overhead resistance or supply.
The S&P 500 Index is looking a little stronger than the Dow Jones 30, but it is dealing with its own challenges. The RSI on this daily chart is also below 50% and, although the daily chart is only a short term trend and not the intermediate term trend, the daily chart slowing down on upward momentum in price will no doubt add additional weight to the Dow Jones 30 index and even the Nasdaq Composite. The S&P 500 Index prices are now below the 200 Day SMA and that is not good. The fact is we are seeing the weight of evidence in all the indexes that sellers are trying to take control again. At this point, looking at the S&P 500 Index and the Dow Jones 30, the best that we could probably look for is some consolidation of prices in sideways action. Again, the Composite could possibly give us some form of a bounce. Overall this should be an interesting week.

Ranger Equity Bear ETF ($HDGE) is our stock pick for tomorrow morning. As the name includes the word "Bear", there is no doubt that you can guess that this is a play on the market going down. The portfolio management of HDGE is looking for stocks that are fundamentally weak and have a good chance of going down and they are shorting these stocks. The ETF has recently pulled above 50% on its RSI and created what looks like a saucer pattern, which could be very bullish for HDGE, if it is fully played out. The Percentage Price Oscillator (PPO) is also positive and even though it's below the zero line, the PPO has to start somewhere on its journey upward. The fact that the PPO is positive means that the buyers are bidding up shares. Since the primary trend of the market is still up you have to be very nimble with this ETF, so be sure to put your stop in.
HDGE can be bought at $5.06. Place your stop around -5% below your buy price.
If you have any questions or I can be of any assistance please don't hesitate to contact me.
Take Care!
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Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.

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