Technical Analysis: Predicting Market Moves

Summary

Could technical analysis actually predict major global news events before they happen? Gareth Soloway, a former losing trader turned millionaire, shares his trading game plan, emphasizing how logic and charts consistently outperform hype. This is a truly insightful video for anyone looking to understand market dynamics beyond headlines. Soloway highlights how oil surged 10% in two days after a gap fill buy level, seemingly predicting news of strikes on Iran. He demonstrates this with a successful Delta Airlines short trade, gaining over 8% in three days by combining technical indicators like trend lines and overbought conditions with the anticipated oil bounce. The core of his strategy lies in identifying key support and resistance levels. For instance, he points out the S&P 500's critical trend line at 7315, which acts as a breakout support, and discusses the NASDAQ 100's reliance on semiconductors. He also warns about rising US 10-year yields, which rallied 20 basis points in a week, and the dollar-yen pair as potential market risks, referencing a significant correction in August 2024 tied to currency fluctuations. Soloway then delves into specific semiconductor stocks like Applied Materials and Micron, identifying potential bounce opportunities around gap fills and pivot highs, though he cautions these are short-term swing trades with potential for larger corrections. He even outlines a potential $100 buy level for Walmart based on a gap fill and trend line coincidence. The video also touches on Alibaba's regulatory-driven bounce and Oracle's support levels. In commodities, gold is presented as potentially falling to $3600-$3500, which Soloway views as a buying opportunity, while silver is expected to fall after breaking support. Natural gas shows a developing cup and handle pattern, and Bitcoin is being watched for a potential inverse head and shoulders formation. Soloway stresses that by focusing solely on charts, traders can strip away emotion, leading to clearer probabilities, lower stress, and higher profits. This practical, data-driven approach makes the full video a must-watch for gaining a deeper understanding of trading strategies.