Simple price action isn’t so simple…
I overlooked something on the indices… the power of the 200EMA support on the S&P…
SPX500 & NAS100
Something I never really considered wa the S&P500 was resting on a 200 ema which, as it was mentioned in AxiTrader Morning Market video, could be a strong level of support.
Whilst it did retrace as expected (and the NAS100 followed triggering my 3 entry orders) during most of the day it stayed lower than the previous highs on the 4 hour chart. At one point it even dropped right back down again forming a nice bearish pin bar on the daily chart. However, it wasn’t meant to be. Another test of the 200ema cause it to rocket back up again, NAS100 followed and all 3 trades were stopped out. Bugger…
Whilst the GER30 price action was similar to the SPX and NAS, it wasn’t quite as volatile. The GER seems to be under heavy selling stress and is already well below the 200ema meaning there’s only previous price points to act as support. Currently, my GER30 short position is still open and there’s plenty of breathing room to the stop loss.
I still expect the indices to continue falling and the 200ema on the SPX500 may act as support for a few bounces or an area of consolidation. If it manages to break, the indices could go into free-fall.
Other FX Pairs
JPY is the safe haven when stocks fall. AUD is also considered a risky currency so funds pile out of AUD and into JPY which, if we are shorting stocks, gives us another opportunity by shorting this pair. Just like the SPX, the pair moved well and retraced to trigger my entry. It fell and again retraced. However, it hasn’t hit my stop loss and the trade is still open, albeit currently at a loss.
Looks like we broke the pennant long today and closed clearly above it. I will look for a retracement opportunity to possibly enter the market long (possibly a good TJ setup) – EMA’s are now all in alignment for a long trend.
Stocks strength today means a little weakness from the “safe haven” JPY. This allowed the GBPJPY price to remain inside the bearish flag formation noted yesterday.
Double pinbar formation on the daily chart failed to uphold the level of support. However, it’s stopped just above the potential H&S neckline. I’m placing a riske yentry to attempt a “wick in” long to make the right shoulder formation.
Tentative break below the bearish flag noted yesterday, but overall, not much price movement
Again, another strong retracement almost putting TJ signals out for a little while (closed above 25ema)however, we will review prices further tomorrow.
Potential falling wedge formation so will be on the lookout for a long break.
TJ signal generated today and whilst JPY is one safe haven that weakened, Gold is the ultimate safe haven that still regained some strength. Target price 1 was hit for profit making the 2nd trade now risk free.
Price: £94.07Was: £109.99
Price: £12.57Was: £12.81
Price: £44.98Was: £69.98
Price: £19.99Was: £29.99
We’re waiting for Bitcoin to continue to fall and as it does, most of the alts fall with it. Without an effective exchange to short the market, I am continuing to sit aside and hold my trading funds (mostly) in Euro’s.
BTC did fall nicely through an area of previous support (neckline for an almost double top on the 4 hr charts)
One altcoin I am eager to enter into is Binance Coin before the upcoming coin burn. It’s also one of the Alt’s thats been rising even as BTC falls. Today, however, it has began to fall again and I’m on the lookout to obtain BNB under 13500 satoshi’s over the next couple of days.
NEO is one of the Alt’s I’m keen to get back to Hodl long term. As current trends go, it looks like NEO could become easily available under $50.
Books offer great value for knowledge… Here’s some of my best “money books”
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