General Comments
Longer-term patterns in the EURUSD are strongly supportive of a bearish trade, perhaps targeting parity or lower. This is an aggressive entry, but it is often possible to enter after a very small consolidation near recent lows. In this case, stops could be established somewhere in the neighborhood of 1.
Breakout
Watch DFS in a breakout above resistance (roughly 34.45 – 34.75.) Resistance levels are usually not clear lines, but rather rough "zones" where selling pressure has previously been able to overcome buying pressure. Multiple tests of a level can often set up a good run above resistance,
Support / Resistance
Fourth principle: Price Action Around Support / Resistance continued from this post... and if you are just starting, go here and read the posts in order (from the bottom up.) I think they will make much more sense that way. [dc]T[/dc]he last two installments in this series have
Breakout
A few lessons here from the daily continuous chart of Corn futures (it's worthwhile looking at the Sept contact along and considering the difference in patterns the roll creates, but that's another story): * The continuous contract has defined a clear range. The potential resistance area (always
Pullback
[dc]O[/dc]ne of the longer-term trades I am watching is, what I believe to be, good upside potential in the USDCHF. Waverly Advisors caught a nice long a few months back and recently closed it out on weakness, but there is still considerable room to run on weekly/
Support / Resistance
[dc]T[/dc]his chart shows a potentially actionable short setup in the stock of SanDisk Corp. (Nasdaq: SNDK). Yes, this is a stock sitting "on support", but the tight consolidation right on that support is more indicative of support failing than holding. Also, note the volatility compression
General Comments