Looking at simple “price action”
The weekend has given me opportunity to really look at simple price actions on the charts.
Price has broken previous low, retraced to test and continued lower. MA’s show downtrend likely to continue so placed a short entry at approx 80.85 to catch a retracement.
Forming a possible bullish pennant on Daily chart. Awaiting a clear break and enter long on a retracement. Check EMA’s to ensure showing uptrend at the time of break.
Moving into a bearish flag, expect a break downwards soon.
On the daily we have broken the flag and EMA’s indicate a continuing uptrend. 4 hour chart shows nice longs with pullbacks which may generate a long TJ signal. However, beware resistance at the previous highs.
Using support on daily chart to continue long. However EMA’s don’t indicate strong trend. One last bounce on this support could create a “right shoulder” in a H&S formation, in which case expect this to turn short and break the neck line in the near future.
Setting up a bearish flag so watch for a break and get short on a retracement. If it breaks, the EMA’s are likely to spread to indicate a stronger downtrend.
Consistently making Lower highs and Lower lows. Potentially at current low so possible retracement. Short entry order placed at approx 105.5 which is the 38% retracement level and the previous low too.
Potential news strength to play off (see this article on the PetroDollar) and currently uptrending. Lookout for pullback to get in or a possible TJ signal on the 4 hour charts. Plus, we’ve not long broken out of a falling wedge.
After recent double top on the daily chart, price has fallen steeply. Recent tumble would expect a retracement and especially as it sits near the 200ema which may give some support. If so, a retracement of about 38% to 50% is possible (which also coincides with recent low) creating a “sell zone”.
I won’t be taking a position on the S&P as it’s large movements mean big risk positions. So, I’ll be using the S&P chart as a leading indicator for other indices.
Nasdaq chart closely resembles the S&P but lower movement means smaller risk on positions (and also smaller rewards) so is better for smaller accounts like mine.
I’ll be setting a market sell order once the market re-opens at minimum £/pip. Also if there’s a retracement from this level I will enter two other sell orders, one at 38% retracement and one just below previous low resistance levels. I will amend retracement orders if not triggered.
The Dax may find a little support at previous spike lows to give a retracement back near previous support (now resistance) so I will set a sell order just above this level to get “wicked in” (when the market opens)
The FTSE has been making consistent Lower highs and Lower lows recently so when the market opens I will enter short at market price.
Price: £44.98Was: £69.98
Price: £20.28Was: £29.99
Not much to mention here right now…
Still waiting for BTCUSD to drop to expected levels to buy back in. It’s been making lower highs and lower lows on the daily chart, so hopefully the downtrend continues. It’s likely to use previous levels of support/resistance as areas for pull backs.
As for the BNB price, it’s just been flying and hasn’t dropped at all for me to re-enter and buy BNB before coin burn. I may have missed the boat but other opportunities will arise if I have.
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