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Hey hey: what's up my friends, so welcome back to the month of january 2022 for this month's price action analysis, so i want to kick things off right with the stock market. So looking at the stock markets, this is the s p. 500. So, looking at the daily time frame right, i just zoom out a little bit.

You can see that this market right has been a long term uptrend. In fact, if you look back all the way back to 2008 right, it's still in a long-term uptrend and many people are wondering man. Why is this so man? You know the jobs. People are losing jobs.

You know covey caused many businesses to close down, but then the stock market still rallies like nobody business and the reason is simple: it's because the fed is printing money, they're, printing trillions of dollars right at a unprecedented rate, and a lot of this money is moving Into the stock markets right and that's why you see the stock markets over the last decade, or so it's been pretty much in a steady uptrend and there's really no point trying to fight the fed. You will not win them. Their money is like in trillions of dollars. Your money is probably the most.

That gives you a few million assuming some of you are millionaires right, so there's no way we can fight the fed. So we will trade along the side of least resistance. So, looking at the s p 500, if you look at the daily time frame, what do you see? Clearly the stock market is in an uptrend. So clearly we want to look for buying opportunities.

Don't think of you know shorting the market, don't think of you know. Buying puts you know thinking you know the market is going to collapse because again, more money flowing into the stock markets will lead to higher prices in the long run. I have no idea how long this can go on right. You know it's not sustainable right.

If you always keep printing money to get your way out of trouble, but again i'm a trader, i'm not an economist. I just simply trade. What i see not what i think, okay, so moving on right. Let's have a look at a few trading opportunities in the stock market.

The first one is this particular stock over here ft and t forty net okay. So this one over here, you can see that this stock, i'm just gon na zoom out a little bit. You can see it it's also in a very nice beautiful uptrend. So if you look at this stock right, what i also like about it is that if you look at their earnings report over the last few quarters right, this one over here is green.

This means that it has beaten earnings expectations over the last quarter. This is green as well. The last two quarter last three quarter last four quarters. In fact, it has been beating earning expectations like for a number of quarters in a row and if you look at the weekly timeframe right, this stock is pretty much trading near all-time highs.

We had a sell-off right last week, a very strong sell-off, but you can see that all-time high is over here. So this stock, it's still bullish. If you ask me - and this sell-off over here right could be - or rather this bearish candle reversal here - could be a potential opportunity right for you to get along on this stock right, this uh nice trending stock. So this is what i am looking at for this stock, so from what i'm seeing over here.
This is an area of value that i want to be trading from. This is an area of support, so if this stock right can come down lower into this area of value, i'm looking for a bullish price rejection could be something as simple as a hammer like this, showing me that buyers are stepping in right, pushing the price higher And when it happens, i'm looking to to enter right on the next candle open, but let me tell you a secret, i'm usually a cheapskate. I don't like to buy it open. I usually have a buy limit order.

A few cents be below the previous day. Closing price, so, let's say somewhere here and my stops - is usually 180 below this low possible target. It can look to take profit just before this most recent swing hike and if you want to continue to write the trend up high, you can also use the trailing. Stop loss to write this trend up higher for this particular stock.

So a couple of ways you can know, look to trade, this uh this stock, another one to share with you. It's uh this one over here called mar mar vel. I believe i think that's how i pronounce it. It's definitely not marvel.

Okay marvel technology, so you can see also this similar story. If you look at a weekly time frame right, pretty much trading at all-time highs, i like to be buying stocks near all-time high, because it's telling me that there is money flowing into this stocks. This is a nice uptrend and there's a good chance. I can make money right if i trade in the direction of the trend, so looking at this on the daily time frame, uh area of value, if you overlay the 50ma, you can see that this stock has re-tested the 50ma a number of times once twice.

Three. Four, and possibly back here for a fifth time over here as well and what's key, is that the price could possibly come into this area of value. This uh this area of support as well, so i'm looking for a bullish price rejection over here come in and quickly reverse back up higher back above the 50 period. Moving average reverse back above support.

When that happens, i'm looking again to enter right on the next day, uh candle the next day, opening price. My stops usually go a distance below the area of value. So, let's say area of value is here my stop-loss, usually a distance below it somewhere, possibly about here, okay possible target again, just before this swing high, you can look to take profits right if you are looking to capture a swing all right. So these are the two potential trading setups.

How about? Let's look at a potential breakout setup? Shall we so let's moving on right. This is my watch list over here. This one over here is not bad, so ntep netapp, uh, netapp, incorporation on nasdaq. So if again, if you look at the the stock right, it has been beating earnings expectations right last quarter.
Last two quarters last three quarters: i like stocks that have bt that have been beating earnings expectations. I also like stock, which are trading near all-time highs, which is again this case for this stock, so great right, number of factors in our favor and clearly it's in an uptrend. So how can we look to trade, this particular stock right? There is a potential breakout setup over here. It's really near the all-time highs, so what we can do is we can overlay with this 20 period, moving average.

Okay, let it consolidate a little bit. This is what i call the breakout with a build up, so let it consolidate a bit let the 20ma catch up to the price touch the lows of the candle right. When that happens right, then, you can actually highlight this at this portion here. This is the highs, then there's the build up that has been formed.

If you look to buy the breakout right over here, your stop loss can just go a distance below this. Most recent swing low, possibly somewhere about here right so you're, basically we're looking for this stock right to go into some kind of a tight consolidation. I call this a build up, the tighter the better and once the 20ma has touched right, the low of the build up. That is where you can get prepared to buy this stock if it does break above resistance like in this case over here, okay.

So this is a net app right, another stock worth keeping a lookout for and finally, let's just move away from the stock market. How about the bond markets? Shall we just uh just a quick one to just give you a little bit of a diversification vacation or in terms of opportunities in the in the financial markets? So this one over here, you can see that this bond market is five year treasury note futures pretty much in a sustained downtrend looking for selling opportunities, because the trend is down, i look to sell trend is up. I look to buy so this one. You can see the trend is towards the downside overlay with the 50ma.

You can see that uh not too bad right, tested once twice three times. Possibly could come back here for a fifth time over here, so to looking deeper. I would just go down to the eight hour time frame and find the area of value and i'll say that this is possibly previous support right, which could become resistance all right. That's a that's one possibility previously we had that this one over here as well.

Okay, price came in breakdown, we had a false break up higher and then re-tested previous support. Support, support, become resistance resistance. Now he has previous support, support, uh uh. Still, this area of support could come back up here, become resistance right.

This is an area to keep a lookout. For so again, the setup is pretty straightforward. Looking for a bearish entry trigger to go shot could be things like a shooting star, a bearish engulfing pattern. So, ideally, i want to see the price come into that level and quickly get rejected so see the price quickly come into this area quickly, get rejected and close right below this area.
So again i can look to go short on next. Candle open stops can go a distance above this highs possible target just before this swing low over here. So these are the few trading setups right that i will be looking right for this coming week all week, sorry, depending how the market unfold itself and by the way, if you are interested to learn more about how you can beat the stock market. So without you know, reading financial reports without reading the news - or you know, studying those patterns right, you can actually join me for my upcoming webinar called stock trading secrets happening on 20th january right.

This is a free to attend this webinar you'll learn. You know how you can generate an extra 10 20 or even 40 a year right without studying financial reports chart patterns, or you know, following the news i'll share with you, a very simple stock trading system that works right generated over 2421 over the last 21 years. So if you're interested just come down to this uh page over here i'll put the link somewhere below this video click on this orange button, you'll be brought to a zoom webinar registration page just sign up for it and that's pretty much it so that's it. I wish you good luck.

Good trading, i will talk to you soon.

By Stock Chat

where the coffee is hot and so is the chat

2 thoughts on “Stock market: price action analysis jan 2022”
  1. Avataaar/Circle Created with python_avatars 𝐒𝐔𝐁𝐁 FOR 𝐒𝐔𝐁𝐁 BACK κͺœ says:

    This is my favourite channel. I especially like it when you explain everything so nicely. I wish you a lot of success with the channel and happy life. ❀️

  2. Avataaar/Circle Created with python_avatars 𝐒𝐔𝐁𝐁 FOR 𝐒𝐔𝐁𝐁 BACK κͺœ says:

    To everyone who is reading this, you probably won't see me again so i hope you have a great life and achieve your dreams. Happy new year❀️😍πŸ₯°

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