G’day Surfers – NFP week has been conquered! Normally a tough week for trading, NFP week continues to produce pips for both our strategies.
Not 100% to our script yesterday but pretty close and we bagged the pips with a lovely Short Trade that was technical artistry. Rather than give us an entry off our Resistance Hotspot, Price Action went straight to our Support option and delivered a perfect Surfing The Pips Secret Candle Pattern and a trade that hit both targets.
Some very obvious Technicals this morning headlined by a big Double Bottom #1 on all Intraday Charts – clearly a potential for reversal. The second notable feature is where yesterday’s sell off stopped – right on the back of our year old Resistance Trendline #2 – what was Resistance is now Support so secondary potential for a bounce. Thirdly, Daily Pivot has attracted Price and helped to form an Ascending Triangle #3, on Intraday Charts. A 100 pip gap #4 between Daily & Weekly Pivots, completes a fairly good case for the Bulls today. Pssst – there’s an Inverted Head & Shoulders forming as well!! As always, there’s also a case for the Bears – but not as compelling – Pivots are Bearish, No Higher Hi’s & Lo’s.
The Day Ahead
To be absolutely frank – I’m not keen to get into the market today. I’ve put plenty of pips in the bank during a traditionally tough trading week and have no intention of giving any back with risky trades. I am also struggling to find any Trendlines (a problem for a Trendline Trader!). The big news announcements start to come thick & fast later today as well so the market might be snoozing prior. I would expect a bounce off Daily Pivot so perhaps the Hotspot is the top of the Triangle (potential neckline), looking to play an ABC Countertrend Long BUT, only after Daily Pivot is tested.
High Impact News
|Spanish 10-y Bond Auction
|Minimum Bid Rate
|ECB Press Conference
|Bank Stress Test Results
BIG Thursday coming up – enjoy the action.