There is room upside for Wallstreet

Marvelous performance by the U.S stock market projected will continue today, especially before the long awaited FOMC interest rate decision on Wednesday. Unfortunately, with major indices reaching all-time high, it is becoming hard for the bull or the bear to choose which stock to trade.

Logically when the indices already strained itself for a long time on the upside route, it will decelerate and reverse soon, similar to the law of gravity. However, the possibility is not active yet without any bearish sign. Currently, traders might decide to hold their finger from placing any positions this week which might lead to sideway market.

Technical Analysis

Dow Jones Industrial Averages (INDU)

Once again, no reason to short Dow Jones Industrial Averages yet. The only valid reason is, It has five days higher closing streak and winning streak does not last very long, but it is a superficial reason and not a strong one. The index will soon reach 20,000, and better option is to wait until it reaches the level. Observe price action and short when a valid bearish pattern formed.

Regal Entertainment Group (RGC)

RGC reached an important level in its stock price. The area between $21 – $21.75 has shown itself as strong S-R area where price fliped between bearish and bullish trend. It currently challenges the area, and there is a possibility it will break downside, but traders need to be cautious as the flip not yet happened, and it might bounce upside.

Other Watchlist

R – possible bearish evening star pattern.

RL – the price slowed down near its recent broken S-R 109 – 110, it might move sideway near it, traders need to watch how price reacts near the level.