Lead-Lag Report: John Roque on Mastering Technical Analysis, Bond Yield Cycles, and Precious Metals Trends

Markets stand at a pivot point as interest rates start to decline. Investors looking for market direction and trading potential volatility may see these opportunities by using technical analysis. Most investors know to look at a price chart to decide if it’s time to get into a trade or not.

But technical analysis can offer far more opportunities. It can give a sign of when to sell a winning trade. Or when to make a short-term trade.

Technical analysis looks for repeated patterns that occur in stock charts all the time. They can occur in individual stocks, sectors, or entire indices.

Today, investors have access to a number of technical tools available for free on nearly every financial website.

While markets have gotten increasingly complex, technical indicators can cut through the complexity.

For instance, investors looking for big returns can look for a breakout trend. That’s where a stock moves out of a trading range and surges higher.

For more defensive investors, moving averages often act as places of support. A falling stock or the entire market will often pause when it gets near a key average. The most-followed moving averages are the 50-day and 200-day.

With interest rates trending lower, technical analysis favors investing in the bond market now. Investors can likely see prices continue to rise as yields fall.

To watch the full interview, click here.