Evening all from here in London. So Looking over the markets we can see that it has been quite a choppy session with no real sustained momentum for either side. It would appear that investors are waiting on the side-lines until the Non-Farm Payrolls figure is out of the way tomorrow. My Cable trade from yesterday is currently on-side and if the bottom trend channel breaks tomorrow with selling price-action then I will be looking to add some more. Trading break-outs isn't something I would normally condone, but given the reasons that put me in the trade yesterday and the fact that I would be adding to a winning position if the breakout were to occur; I think it would be justified. I will also trail my stop-loss order down to yesterday's high because if this breaks the picture changes.
I have also got my eye on the AUS/USD pair. I've put in a speculative short position as shown below.
We are at a significant resistance level on the daily time-frame. Momentum is not on my side and it's a risky trade, however, I think it may be worth having a punt as price repeatedly failed to trade higher throughout today's session forming a head and shoulders formation on the lower time-frames as depicted below.
We saw Gold break-out to the highs today but the Aussie couldn't follow and this is a clear sign of selling pressure. As this pattern has coincided with a big level and more importantly I can have a very tight pre-defined stop I think the upside for this trade could make it worth the risk. This is by no means a high-probability trade but if we get some downward momentum over night there will undoubtedly be some long profit-taking/covering.
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