5 Charts to Watch This Week
1. Crude Oil WTI
Markets hate uncertainty and so does oil.
Oil was already in the midst of a correction trading lower by more than 10% from its October high above $85. Then came Omicron.
Oil sold off by more than 12% on Friday. That's more than $10 a barrel. So now what?
Technically oil is still in an uptrend but there are some important levels to pay attention to.
First is the 50-week moving average where it has managed to trade above since November of last year. If the price dips below, then we need to watch the 200-week moving average and old price support in the low $60's...
2. Small-Cap Stocks - IWM
One of the most widely watched breakouts among technicians, FAILED. So far anyway.
After failing to hold above the breakout area/230 last week, the price has now come all the way back below the 200 day moving average.
I'll be watching to see if price can get back above like it has consistently since August of this year...
3. NYSE New Lows
Friday's price action saw new lows on the NYSE reach levels not seen since May 2020.
Was Friday the top in new lows? Was that enough selling or capitulation to signal a bottom?
4. Volatility Index - VIX
The VIX topped out right where it did back in May and September. Is that it for the spike in volatility? Or is there more to come?
5. Chinese Technology Stocks
Chinese technology stocks/KWEB continue to struggle and get left behind by their US counterparts.
Is this an opportunity? Or should you continue to stay away?
The current trendline and the $40 area is key to watch moving forward. Price needs to hold above or we could see another leg lower...
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