Bearish Patterns Forming on Tech?

Discussion in 'Technical Analysis' started by 2Fast2Good, Dec 31, 2017.

  1. Hey all, 3 months into the market so my TA is pretty bad. I went through some big house tech stocks, and have found bearish formation on many of them (bear flags & rising wedges mainly).
    (not a bearish pattern, but hitting resistance. Why would anyone buy at these highs?)


    Aside from NQ (obv), the other stocks are all in the same sector and correlate. Is this implying some further drops in tech these upcoming months? These are text-book bearish patterns.
    murray t turtle likes this.
  2. lcranston


    Whatever may happen in the upcoming months is unknowable. Focus on what's happening now and on what led up to now.

    That a "bearish pattern" is "textbook" does not necessarily mean that it has any statistical significance or even value, if for no other reason than defining these patterns is next to impossible and may amount to nothing more than bunnies in clouds. There is also the tendency of so many traders to ignore the past, e.g., all the "wedges" and "flags" that have already appeared on the charts yet were followed by new highs.

    Ask yourself whether or not whatever it is you're looking at is able to make new highs. The fact of this, or its absence, is unquestionable among everyone who can tell higher from lower and does not depend on patterns or indicators or opinions of any sort: a new high is a new high. If it can't make or maintain a new high, is it able to sustain its trend? If it has trouble with new highs and its trend is in trouble, you may be in business. Until then, relax.
    murray t turtle and Xela like this.

  3. I don't understand what you're saying. I'm just pointing out what the technical analysis which are bearish formations. I'm not sure what you're arguing against here?
    murray t turtle likes this.
  4. %%
    i picked a weak one, on the upside anyway, monthly + weekly/daily chart-MSFT; but actually MSFT is not really same sector as NVDA,AAPL,@ all, even though all are big cap techs, not same sector as MSFT, so could sees some MSFT 5%/+ drop like last month.

    BUT tech tends to be real strong JAN;
    even though the polar bears + bulls noticed that 5% stumble, DEC.Flags are too subjective for me to comment on that, i study 50 dma + such......... Hope this helps ;:caution::cool:wisdom is profitable to direct