An adroit trader manoeuvres through the intricate stock markets with exceptional expertise and finesse.

The term "adroit" implies high competence, agility, and cleverness in executing trading strategies effectively. An adroit trader demonstrates keen analytical abilities, adept risk management practices, and the capacity to adapt swiftly to changing market conditions. With a combination of strategic thinking, discipline, and emotional control, adroit traders consistently seek opportunities to capitalise on market movements while minimising risks.

In essence, an adroit trader is knowledgeable about the intricacies of trading and demonstrates the agility and finesse required to excel in trading

Here are some adroit traits of a trader:

1. Analytical Mindset: A skilled trader can analyse market trends, financial data, and news to make informed decisions.

2. Adaptability: Successful traders can swiftly adjust their strategies in response to changing market conditions, ensuring they stay ahead of the curve.

3. Discipline: Discipline is essential for sticking to trading plans, executing trades without emotion, and maintaining consistency in approach.

4. Patience: Patient traders understand that success in trading often requires waiting for the right opportunities and not succumbing to impulsive actions.

5. Emotional Control: Mastering emotions such as fear and greed is vital for making rational decisions and avoiding impulsive trading mistakes.

6. Continuous Learning: Adroit traders never stop learning. They stay updated on market developments, explore new strategies, and refine their skills to stay competitive.

7. Strategic Thinking: Successful traders think strategically, setting clear goals and developing well-thought-out plans to achieve them.

8. Confidence: Confidence in one's abilities and decisions is essential for navigating the market's uncertainties with conviction.

9. Resilience: Trading can be challenging, and adept traders demonstrate resilience by bouncing back from losses, learning from setbacks, and persisting in their pursuit of success.

In conclusion, being an adroit trader encompasses a combination of key traits and skills that enable individuals to make profitable journeys in the trading arena. By sharpening the above traits, traders can strive to embody the qualities of adroitness, ultimately enhancing their performance and prospects of building wealth.

Stock List - 9th December 2023

In stock market trading, there's a perpetual quest for efficiency, accuracy, and profitability. Among traders, there's a prevailing debate between being a systematic trader versus a discretionary one. The former relies on predefined rules and algorithms to execute trades, while the latter depends on human intuition and judgment. In recent years, trader's interest in systematic trading has increased, driven by technological advancements and access to sophisticated tools and platforms.

A common sight in the trading community is traders spending countless hours crafting scripts and algorithms to automate their trading strategies. These scripts often involve complex combinations of technical indicators, statistical models, and machine learning algorithms aimed at generating profitable trades.

Last evening, I went for dinner with a friend who connected with me on Twitter. He is also a trader engrossed in developing a script based on the Relative Strength Index (RSI) and Bollinger Bands. He had devoted five months to refining his system, tweaking parameters and fine-tuning the code to achieve optimal results.

However, amidst the fervour of script writing and system development, it's crucial to recognise the limitations inherent in this approach. No matter how diligently one fine-tunes a trading system, there's always an element of uncertainty and unpredictability in the markets that cannot be fully accounted for.

During a dinner conversation with him, I demonstrated an alternative approach to systematic trading that challenged his conventional mindset. Leveraging the tools and resources provided by Defiendge Securities, I swiftly recreated his trading system using the RZone platform. We replicated his strategy with just a few clicks and conducted backtesting to assess its performance. The results showed the power and efficiency of sophisticated trading platforms.

Although we achieved impressive results in backtesting, I advised him to conduct front testing with the data to validate the system's performance in real-time or simulated real-time market conditions.

In addition to backtesting, front testing is a crucial step in evaluating the effectiveness of system trading strategies. While backtesting involves analyzing historical data to assess how a trading system would have performed in the past, front testing allows traders to observe how the system performs in real-time or simulated real-time market conditions. Front testing also enables traders to identify any discrepancies between backtested results and actual real-time performance, allowing adjustments and refinements before committing capital to live trading. By incorporating front testing into the evaluation process, traders can enhance the robustness and reliability of their trading systems, ultimately increasing their chances of success.

It's 1 am, and our discussion deep-dived into systematic trading, exploring the trade-offs between DIY scripting and leveraging existing tools and technologies. While there's merit in customising trading systems to suit individual preferences and trading styles, there's also value in embracing pre-existing solutions that offer robust features and functionalities. As the night wore on, the trader realised that sometimes, the most prudent decision is to leverage the right tools rather than reinvent the wheel.

The key takeaway from our discussion is the importance of exploring the myriad tools and resources available for systematic trading. Whether utilising advanced trading platforms like RZone or accessing comprehensive guides and tutorials, traders can enhance their efficiency and effectiveness by leveraging existing solutions. While there's no one-size-fits-all approach to trading, being open-minded and adaptive to new technologies and methodologies can significantly elevate one's trading prowess.

In conclusion, while you can script the system, you cannot script a trade with absolute certainty. The uncertain nature of stock markets demands a flexible and adaptive approach to trading. By embracing the tools and technologies available, traders need to trade with confidence and agility. Whether you're a veteran or a novice trader, the key to the success of a trading system lies in continuously refining your strategies, leveraging available resources, and staying ahead of the curve in systematic trading.

@Sharad Girad Soon Sir....Patience is the key to ride the trade

Superb follow-through after Fed...Expecting $2285-2360 this year.

Here is the list of stocks trending around the Ceiling of Darvas Box on an hourly chart. This is generated using Darvas Box scanner.

A follow-through buy or sell signal confirms the significant patterns that were previously triggered.

To aid traders in identifying these follow-through signals, Definedge employs a specialised scanner in RZONE. This scanner displays a list of stocks generating bullish or bearish follow-through signals.

Click here to learn How to use Scanner

Here is the list of the F&O stocks ahead of Union Budget 2024.

*The stocks marked in red have met VC1 or VC2

@ASHISH MAURYA Ashishji, check the Definedge Media index, an equal-weighted media index because Nifty Media depends on the move of Zeel and SunTV due to their high weights. In contrast, equal-weighted will give you a clear picture.

@Shyam S Sir, the platforms are separate, which makes it challenging to synchronize all the data between them.

Here is a screenshot of the system builder in case you wish to create the system in your login.

In the aftermath of reaching an all-time high during the early hours of the trading session yesterday, the Indian equity markets experienced a notable shift in momentum as the day progressed. The latter half of the trading day was notably dominated by bears, with the market sentiment taking a downturn.

Amidst this bearish turn, one particular candlestick pattern that swiftly comes to mind, even without glancing at the charts, is the Bearish Engulfing pattern.

The Bearish Engulfing Candlestick pattern is a significant reversal pattern in technical analysis that often signals a potential trend reversal from bullish to bearish. This pattern consists of two candles, with the first being a smaller bullish candle followed by a larger bearish candle that completely engulfs the body of the preceding candle.

The practical aspect of the Bearish Engulfing pattern lies in its ability to reflect a shift in market sentiment. When this pattern occurs after a prolonged uptrend, it suggests that the bears have gained control, overpowering the bulls and potentially indicating a reversal in the prevailing trend. Traders consider selling or taking short positions, anticipating a downward price movement.

Here are some stats of sectorial indices and stocks were Bearish Engulfing pattern is visible.

Let's look at the stats on the number of stocks were this bearish pattern is visible.

I have scanned this pattern using the scanner feature of RZone.

You can find the stocks list by following this steps.

1. Go to Price Scanner
2. Select Candlestick Scanner
3. Select the Group
4. Under Condition, Select Engulfing Pattern Bearish
5. Finally, Click on Scan and you are ready with the stock list.

Have a Happy Trading Day!

@Deepak Singla Thank you for your message.
Sir both the entities and the server are separate, which makes it challenging to synchronize all the data between them.

In case you wish to create the system in your login, here is the screenshot of the system builder.

Mangesh Joglekar shares his Options Trading System for the chart he shares with the Definedge family.

Stock List - 23rd December 2023

@Prasad Vyas You can view here https://insight.definedgesecurities.com/exclusive-webinar/market-outlook-budget-day-trading-strategies/

Stock List - 16th December 2023

@Rajeev Goyal Sure. How about a video on this pattern?

Re: Reliance - Breakout ABOVE 2640

Nifty reversed with the bear gap, forming the island reversal pattern on the daily charts, thanks to the HDFC Bank.

But I am not here to highlight the Nifty50 chart. Check my Nifty Chart analysis here.

For avid followers of RSI, the latest data reveals some intriguing statistics that warrant attention:

Source: RZone

1. Fresh Negative Crossovers: Today, 18 stocks exhibited a fresh negative crossover on the RSI, indicating a potential shift in momentum to the downside.

2. Existing Negative Crossovers: As of yesterday, 19 stocks were already in a negative crossover on the RSI, suggesting that these stocks might be facing a bearish trend.

3. Bullish Crossovers: Only 13 stocks are currently in a bullish crossover on the RSI, indicating a positive trend. However, if the bears continue to dominate the market, these stocks may also find themselves in a precarious position.

Though the setup does not indicate the trend reversal, it is a sign of caution on longs.

Is anything interesting in the #BudgetDay2024?

Let's focus on the Nifty chart here.

The potential for a bullish trend is evident by forming a Bullish or Inverted Head and Shoulder pattern, indicating a possible upward market move.

A significant obstacle lies in the form of a gap between 21,800 and 22,000, establishing a formidable resistance zone.

The presence of a Doji pattern, coupled with bearish momentum on the hourly chart, raises concerns about the weakening grip of the bulls on the market.

Should the bulls prove unable to breach the resistance, a looming threat emerges as a potential aggressive onslaught by the bears.

Traders must remain vigilant and watch the levels closely.

Stock List 3rd Feb 2024

@L M You can use vertical counts or trailing methods.

The Nifty Equal Weighted Index has surged past its previous range and reached an all-time high.

Will the Nifty50 follow suit?

UPDATED CHART: Nifty FMCG Index with 50DEMA and 200DEMA

Large caps appear poised to take the spotlight as indicators suggest a shift in market dynamics.

The ratio charts of NiftyMidcap/Nifty500 and NiftyMidcap/Nifty50 are showing signs of exhaustion, with their slopes turning southward.

Relative Strength Index (RSI) further corroborates this trend, signaling a breakdown in midcap strength against both the Nifty500 and Nifty50.

These chart setups highlights that large caps are gearing up to seize the opportunity, as if proclaiming, "Apna Time Aayega."

Patterns negates below 21,850

Pattern Negates Below 215 (CMP-224)

@Bharat Bhatia Course on its way

Stock list 23rd March 2024

Technical Parameters:

1. Open=Low today in the support zone
2. Gap as support zone
3. Moving Average Channel - 62DEMA

Read our previous article - https://www.definedgesecurities.com/blog/whats-trending/swimming-in-the-big-whales-wake-hdfc-bank/

@PRANAV GULABANI Yes

Nifty PSU Banks bulls seize the opportunity in the market dip. Analysis of the chart shows that the index has surpassed the short-term 21DEMA Channel, indicating a potential upward trend. Additionally, it appears to be forming a Rising-Three Candlestick pattern, a bullish signal that could be confirmed once the index breaches the 7,210 mark. Check out our detailed discussion in the following video: https://www.youtube.com/watch?v=ETPXQkMsbgs

On the stocks side, we ran the "All Chart Matrix" on RZone; here is the list of the stocks based on the scoring:

To learn about Harmonic Patterns, click here

Adani Ports 1,244 to 1,310
#BullishHarmonic

@Prashant Vaikunthe Great Sir

Source: RZone

Filter Criteria: P&F Daily 0.25% X 3 from Nifty200
Data as per closing of 14-05-2024

INFOSYS

WIPRO

TECHM

LTIM

Breakout Level - 85
DBS - 65
Vertical Count - 145/265

You can join my Harmonic Trading Course here https://gurukul.definedgesecurities.com/courses/harmonic-trading-patterns-simplified/

As per the Relative Strength Index (RSI) indicator, only 50% stocks are in positive trend from Nifty750 (Nifty500+ MicroCap 250) on the MONTHLY chart.

The RSI is a widely used momentum oscillator that measures the speed and change of price movements. Developed by J. Welles Wilder, the RSI oscillates between 0 and 100 and is typically used to identify overbought or oversold conditions in a market. A 14-period RSI is a common choice among traders, providing a balance between sensitivity and reliability. To enhance the RSI's utility, traders often use a 9-period simple moving average (SMA) as a signal line, facilitating the identification of positive and negative crossovers.

Positive Crossover: A positive crossover occurs when the 14-period RSI crosses above its 9-period SMA. This crossover indicates increasing bullish momentum and suggests a potential upward price movement. It is often seen as a buy signal because it shows that the RSI is gaining strength relative to its recent average, suggesting that buyers are becoming more active.

Negative Crossover: Conversely, a negative crossover happens when the 14-period RSI crosses below its 9-period SMA. This indicates increasing bearish momentum and suggests a potential downward price movement. It is typically interpreted as a sell signal because it shows that the RSI is losing strength relative to its recent average, suggesting that sellers are gaining control.

The crossover can help in understanding the trend's direction and strength, categorized into neutral, positive, and negative trends.

Neutral Trend: A neutral trend is characterized by the RSI hovering around the 50 level, with frequent crossovers between the 14-period RSI and the 9-period SMA. In a neutral trend, the market lacks a clear direction, and the price movements are generally range-bound. Traders might adopt a wait-and-see approach or engage in short-term trading strategies to capitalize on small price fluctuations.

Positive Trend: In a positive trend, the RSI often stays above the 50 level, and the 14-period RSI consistently crosses above the 9-period SMA. This trend indicates sustained bullish momentum, and traders look for buying opportunities. The positive crossovers during this period confirm the strength of the uptrend and suggest that the price is likely to continue rising. However, traders should also watch for overbought conditions (RSI above 70) that might precede a reversal or a pullback.

Negative Trend: In a negative trend, the RSI typically remains below the 50 level, and the 14-period RSI frequently crosses below the 9-period SMA. This trend signals sustained bearish momentum, and traders look for selling or short-selling opportunities. The negative crossovers during this period reinforce the strength of the downtrend and indicate that the price is likely to continue falling. Traders should be cautious of oversold conditions (RSI below 30), which might signal a potential reversal or a temporary rebound.

We ran the RSI scanner in RZONE to check the trend of the stock on the monthly chart, and the results were shocking.

Though the markets are trending bullish, only 373 out of 750 stocks are bullish are per RSI while 42 remain Neutral and 335 remain bearish.

• Bullish Dragon
• Triangle Breakout
• Above 62HEMA Channel

Below support, the trend may change on these stocks.

Understand the role of trading volume in the stock trend. Learn why the first hour's volume is important, how rising volume above the 20-bar average indicates trending stocks, and how to leverage RZone for intraday and swing trading opportunities.

Read here: https://www.definedgesecurities.com/blog/rzone/why-volumes-are-important-in-trading/

I had my eye on PVR in mid-June when my 62-DEMA Channel scanner flagged the stock.

Today's price action confirms a bullish breakout above the prior high, solidifying the unconventional triple-bottom pattern. The close above 1451 will confirm the breakout.

Recent low - 1415

@Prashant Vaikunthe Thanks for following us

The Bank Nifty has been oscillating between 52,000 and 53,000 over the past few trading days, following its recent high of 53,301. This period of consolidation reflects a tug-of-war between the bulls and the bears, leaving traders on edge as they await a decisive move.

A closer look at the index's constituents reveals that HDFC Bank has been a significant drag, pulling the index lower. In contrast, ICICI Bank and Axis Bank have contributed positively, attempting to counterbalance HDFC Bank's impact. Given HDFC Bank's substantial weight in the index, its performance heavily influences the overall movement of the Bank Nifty.

The technical chart of Bank Nifty indicates a critical support zone between 52,000 and 52,180. A break below this level would likely hand the advantage to the bears, signalling a potential downturn and invalidating the recent high of 53,301 as a false breakout. On the other hand, maintaining support above this zone could keep the bulls hopeful for another attempt to breach the recent highs.

Options traders might find a strangle short strategy appealing while the index remains confined within this range. This strategy could be profitable if the Bank Nifty continues to hover between 52,000 and 53,000. However, trending traders should remain patient, acting only when there is a clear breakout on either side of this range to capture the next directional move.

Federal Bank leads the table on the RS Matrix, followed by Axis Bank and ICICI Bank.

It's been 10 days, and Bank Nifty continues to trade within the range.

For the same period, the US Bank Index is up over 5%.

Pharma stocks are trending bullish but the bearish harmonic on the stock indicates the pause to the momentum.

The bears may capitalize the reversal and look for short-on-rise opportunity while the bulls can be in the game on the break of 7,035.

To enroll for Harmonic Course, Click here

Stocklist - 27th July 2024

The Bearish Gartley - PRZ @ 24,650-24,750

Pattern Negate above 24,900

Hey, Gift Nifty predicts the market will open about 300 points higher, around 24,400. By the way, here are some stocks with a bullish candlestick pattern called Piercing.

Source: Zone Mobile

Stocklist - 31st August 2024

One sector that has garnered significant attention amid this shift is the India Digital sector, represented by the Nifty India Digital Index. This index tracks companies that are at the forefront of India’s digital revolution, including those in IT services, e-commerce, digital finance, and communication technologies. As India continues its push toward digital transformation, the companies in this index are well-positioned to capture growth from increasing internet penetration, digital payments, and the broader push toward a tech-driven economy.

Technical Outlook

Nifty India Digital Index

On the Nifty India Digital Index 0.25% X 3 Point & Figure (P&F) Daily Chart, a clear bear trap is visible after the Anchor column formation. This trap, positioned above the moving average, is a strong technical signal of a potential bullish continuation. The close above the crucial 9,600 level will confirm an anchor column breakout, suggesting that bullish momentum is likely to resume in the coming sessions. Traders and investors should closely watch this level as it could mark the beginning of a fresh upward trend in digital stocks.

7 Leaders in the Nifty India Digital Index

We utilized the “All Chart Matrix” tool to analyse the constituents of the Nifty India Digital Index. This comprehensive analysis ranks stocks based on technical strength, and the following top seven stocks stood out with the highest score of 15:

*as per close on 10th Sept 2024

These companies are leaders in the digital and IT sectors, each playing a crucial role in India’s digital economy. Their strong technical position suggests they may continue to perform well as the market trends upward.

P&F Pattern Setup on Metal Stocks

Bullish Head & Shoulder and Trend Getting Stronger on Heikin Ashi Chart

JindalStel 1040CE - TTB Breakout

@Prashant-Vaikunthe Yes. The counts were 29 and 39, both achieved.

Technically, the Nifty Realty daily chart witnesses the breakout as it reverses from the 62DEMA Channel.

On the DeMAP, few pf the Nifty Realty constituents are gaining momentum and trend.

Bank Nifty and Pvt Banks leading the day.

• Range Breakout
• 62EMA Channel Breakout

GodrejProp 3100CE Oct

Stock appeared on Trividh, but do check Liquidity

@PRANAV GULABANI Yes

Stocklist 21st Sept 2024

Stock list 5th Oct 2024

Bullish Entry Above 24,808 (F)
Pattern Negates Below 24,600 (F)

Stocklist 19th Oct 2024

The Nifty50 Daily 0.25% X 3 Point & Figure (P&F) chart shows some promising technical signals.

The index trades near a crucial support level at the D-Smart Line, 24,557. After hitting a low of 24,567, the Nifty rebounded and closed the week at 24,854, indicating a potential bullish reversal.

If the Nifty can maintain support above 24,557 and close above 25,175, it could signal a renewed uptrend.

Additionally, the PMOX is still showing bullish signs, suggesting that there's still some strength in the market. Momentum is a key factor in market trends, and as long as PMOX remains positive, there's hope that the Nifty will recover and regain its upward trajectory this Diwali.

@PRANAV GULABANI 200

On the Heikin Ashi daily chart of Nifty50, bearish exhaustion is evident at the support zone of the 100DEMA Channel (created using the 100DEMA High and Low), indicating that bears respect the short-term pullback within the long-term bullish trend.

However, this exhaustion does not confirm a bullish reversal until a Bullish Heikin Ashi candle closes above the 100DEMA (High) at 24,628.

Additionally, the oversold RSI supports the potential for reversal, but awaiting confirmation is crucial.

@Nirav Merchant Yes it's in Bank Nifty too.

The Nifty has reversed back to 23,500, with 200DEMA (Close) placed at 23,540, but the major hurdle lies at 23,660, which is 23,660.

Last week, the index slipped in the 200DEMA Channel {200DEMA-High and 200DEMA-Low} and hasn't closed above the 200DEMA-High. Though there was an attempt by bulls, bears convincingly took an opportunity in Tuesday's last hour of the trading day.

It's another attempt by the Bulls today. The Nifty is trading 200 points up at 23,550 around 10 a.m., and if they manage to close the day above 23,660, this is a sign of a potential reversal on the chart.

What are your thoughts?
Do share your views.

HCL Tech

Persistent

Wipro

The Bulls can be in the game above 24,600 while the breach of 24,350 will be important to watch on weekly expiry.

Nifty 24,600 to 24,850

Stocklist 7th Dec 2024

The Nifty 50 index recently staged a strong comeback, rallying from 23,300 to 24,700 levels. However, technical analysis suggests that the momentum might be waning, with the index potentially entering a period of range-bound trading.

We are glad many of you are following the Bold Bulls Setup of Monthly, Weekly and Daily RSI.

Monthly RSI: At 68, the monthly RSI indicates a bullish long-term trend and the uptrend for the Nifty remains intact.

Weekly & Daily RSI: Both the weekly and daily RSI are trending below 60, around the 50 level. This signals a neutral stance, suggesting that the current momentum might be losing steam.

Bulls would need to drive the market higher with a more decisive and rapid move to regain control and resume the uptrend. Until then, the Nifty may consolidate within a defined range, and traders should focus on stock-specific action.

Pattern negates below 1,740

@Nishshkumar Jaani,CFTe https://www.youtube.com/watch?v=opYHnfDP6l8

Pattern negate below 48,500.

• Multiple Bullish AB=CD
• Bull Sash - Bullish Reversal Candlestick Pattern

Pattern negates on the Close below 122.

The market's current downturn has instilled a sense of unease, echoing the famous line, "Risk hai toh Ishq hai." However, in the reversal trading, calculated risk is paramount. And right now, the Nifty Midcap100 index is flashing signals that warrant attention.

Despite the prevailing bearish sentiment, the emergence of multiple bullish harmonic patterns on the Nifty Midcap100 indicates a potential reversal.

1. Bullish Black Swan Harmonic Pattern on the Daily Chart

2. Bullish White Swan Harmonic Pattern on the Hourly Chart

The validity of these bullish harmonic patterns hinges on the index holding above its recent low of 48,503. As long as this level remains intact, the potential for a midcap rally remains strong. A breach of this level would invalidate the patterns and suggest further downside.

What are you buying? Let us know in the comments below.

@Subramanya Joshi It's a Gap tool.

Recent trade has been long since ~22,800 and still counting.

Do You See any Warning Bells or Signs of Exit?

Following the Pahalgam attack, many traders hesitated to take new positions, bracing for a potential war. This cautious sentiment, driven more by fear than facts, led to a herd mentality that caused many to miss a significant trend in the market.

At Definedge, we believe in staying anchored to an objective, system-based approach—relying on what charts and data reveal, not speculation.

A Look at the Nifty50

Point & Figure Chart (0.25% x 3 Daily)

The Nifty50 recently broke out of a four-column triangle pattern on the P&F chart—a classic continuation pattern. This move was confirmed by an Anchor Column Follow Through (AFT), suggesting renewed bullish strength. Minor resistance lies at the 45-degree trendline, but the breakout is technically significant.

Heikin Ashi Weekly Chart

On the Heikin Ashi chart, the Nifty reversed near the 200-week exponential moving average (WEMA) channel. It formed multiple bullish candles and successfully cleared a key resistance zone. This chart setup reinforces the positive outlook.

RSI Indicator: Momentum Still Bullish

Perhaps the most compelling statistic comes from the RSI Indicator Digger scanner: 41 of the 50 Nifty stocks currently show a positive weekly RSI trend. This signals strong underlying momentum, with bulls clearly maintaining control.

Be Objective, Stay Prepared
While equity markets inherently carry risk, letting fear drive decisions often leads to missed opportunities. Traders should stay alert to trend change levels. As per the P&F chart, a close below 24,000 would negate the current bullish setup. A follow-through below this level will help confirm whether it’s a reversal or simply a consolidation.

At Definedge, we continue to trust the systems. The charts speak louder than emotions. Are you listening?

Defence stocks experienced a promising volume spike in the first hour of trading today, the beginning of a new trend?

To learn Harmonics, Click here

Definedge Railway Index Weekly Chart

RSI of Definedge Railway Index Constituents (Weekly):

The carry trade has become the focal point of market discussions as the Japanese Yen has appreciated significantly against the Dollar (USD), moving from 162 to 142 in just five weeks. This shift follows the Bank of Japan's (BOJ) decision to increase its key interest rate to around 0.25%. The hike in borrowing costs has led to a cool-off in global equity markets, particularly affecting US fund houses.

Technical Analysis:

The USD/JPY pair has yet to break the December 2023 low of 140, indicating that it remains in a bullish phase according to Dow Theory (positive for the USD).

The Bullish Swan Harmonic Pattern is visible at the low of 141.69 in the demand zone of the 100 MA Channel. The reversal from the current levels can test the 151.35 levels in the short-term while the possibility of the new highs cannot be ignored in the medium-to-long term perspective.

Any weekly close below 140 could signal caution for US equities, potentially causing ripple effects across global markets.

To learn Harmonic Patterns, Click here