September Rate Hike
Another round of monthly candlestick charts for some recently discussed companies at Trendy Stock Charts. This update will include charts for Cisco Systems, I Am Gold and Twitter (CSCO, IAG & TWTR). I want to look at a cross-section of industries in this update to see if it can provide any additional insight into a possible September rate.
However before I start this update, I want to point out that I added a comment to yesterday’s NASDAQ article stating one other possibility regarding a possible September rate hike. While I may not be certain on exactly how the market is going to fade out, I do feel more confident that we are fading out.
For those members that have been with Trendy Stock Charts for a while now, you have probably realized that while I don’t always get the exact path right, I am usually pretty good with the final destination.
As we are approaching the upcoming destination, make sure you are appropriately invested for your risk profile and investing style. The last part of the bull run usually includes a lot more volatility.
So with that out-of-the-way, let’s review some more monthly candlestick stock charts!
CSCO – Cisco Systems
Last time I wrote about Cisco Systems was a day before its most recent earnings report where I mentioned that CSCO appeared ready to breakout on a multi-year bull run. I stated that the $29.50 – $30 area was a decent place to start scaling into a long position with the stock. CSCO’s share price hit $30.06 the day after earnings. This is an updated 5 year monthly candlestick chart from that previous article.

CSCO’s Share Price and Wave Pattern Has a $36 Price Target for the Current Uptrend (Which Will Include 1 Significant Pullback)
How does a possible September rate hike fit into the above developing pattern for CSCO? Maybe the September rate hike causes CSCO to re-test the $30 support level before it significantly starts its multi-year bull run.
IAG – I Am Gold
This is a 2 year monthly candlestick chart rather than a 5 year chart. I wanted to still use monthly candlesticks, but zoom in on August’s Bearish Engulfing Candlestick Pattern.
I placed a Fibonacci Retracement Tool on last months candlestick. Last month signaled a reversal and developed a Bearish Engulfing Candlestick Pattern. I’ve identified the minimum upside trade I am looking at from these levels.

Using a Fibonacci Retracement Tool on Last Months Bearish Engulfing Candlestick Pattern to Calculate a 38.2% – 50% Retracement of That Candlestick
I have been trading 1000 share lots in this stock. Any shares that get caught underwater are added to my “longer-term” position for the time being. I use a LIFO gain-loss strategy when I trade.
LIFO = Last In First Out
Read more about LIFO on your trading platform.
Based on the Bearish Engulfing Candlestick Pattern that developed last month, I anticipate a rebound up to the gray shaded area, with the next action determined by the Fed. What seems to fit the pattern better is no September rate hike and then a push back down below todays $3.64 low.
TWTR – Twitter
Another buy-out rumor for TWTR. While these rumors do tend get redundant, they also provide about the only reason for the rise in share price. I provided the roadmap for scaling into TWTR in a previous feature-length article titled “Twitter TWTR 8/20/2016 – Buy-In Price Calculated“.
While this is supposed to be a monthly chart update, I though an update on TWTR’s 6 month daily candlestick chart from the previous update was more appropriate. I tweaked Waves A, B and C a little from the previous update based on actual price action.

Reviewing TWTR’s Current Pullback on a 6 Month Daily Candlestick Chart – A Final Push to $17 Appears Possible
While initially I calculated a $17.50 – $18 price target for TWTR’s pullback, $17 appears to be the more likely target based on TWTR’s recent chart activity. A standard Zig-Zag Wave Pattern appears to be starting a Wave C and could hit the $17 price target very quickly – be prepared. Very quickly would be within the next 2 weeks.
Summary
CSCO’s chart could use a rate hike to cause a correction and re-test the $30 area. IAG’s chart seems to indicate the rate hike won’t happen. If it does it will probably sell off on the news. Interest rates really should have no bearing on TWTR’s chart.
While I think I was able to build expectations for the above charts, I do not think I am any closer in determining whether or not the Fed is going to raise interest rates in September by a quarter of a percentage point. Whether they do or not raise rates is not the immediate concern.
The most important thing to remember is that before the market can start any significant correction, it will still need to make at least one new all-time high to complete a Wave 5 to the upside. I remain cautiously bullish until that happens.
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