Market analysis- 23Aug2022

Market analysis 23Aug2022

This week, i will be focusing on the fibonacci retracement level on the weekly chart.

Key levels to look at: $403, $395 and the last support at $360.

As mentioned previously there is a clear volume divergence for the previous rally, retracement is sure coming, and it is coming and coming big

Actually I prefer the retracement is more gentle, not like going down 2-3% per day, like the volatility is coming back again. Nonetheless, I can't speak about the direction yet. Let's observe on how the market will retrace base on the fibonacci retracement.

The worst is when the SPY breaks below 360. Why? Look on the chart on 02May2022, when the sucker rally falls below the previous low. It then crashed all the way to $360.

Crude oil: We can see that the MA30 is clearly flatten, and it has been struggling at the $90 level. The key support is $85 and i am looking forward for it to break below $85.

Strength stocks with good fundamental:

Actually i did scan for the strong stocks. And many stocks are penny stocks 😅

So, i will share some big cap stocks which are suitable for long term investing and have a better chance to bet when the market turns bullish again if it happens:

Apple. The current strongest stock for the FAANMG. Eva you getting it right!

MSFT: Next is microsoft. WHere it manages to close below MA30 in the last rally.

Then, it follows with AMZN and GOOGLE. (@Meta Moo and @Mooers Lab: Can i suggest MooMoo to update and adjust the stocks which splitted before? The current chart such as Google and Amazon are not updated and it interfere the analysis)

Meta plaftorm and neftlix are the weakest. Btw, after the bear market, the leaders will reshuffle and we may not see some of them as a leading stock anymore.

But i will only add APPL and MSFT if i want to use some cash for tech.

The one even stronger is UNH. It has been above MA30 almost all the time, and that is why if you did follow my trade (very a few recently), UNH is my main stock to add.

For example, it only goes down 0.7% yesterday.

OK after talking so much, what is the conclusion? It is not a time to buy. If it does not break above the previous swing high at $430, no strength is shown.

The retracement extent is not known yet, it can go all the way to $360, if it breaks below, gg. Let us see how strong/weak of this retreacement go can to this week