G’day Surfers – Live Pips for all……….
The market did exactly as we requested during early trading, rallying as London had it’s first chance to react to NFP news. We were ready for that move and Price Action setup a classic Surfing The Pips entry and we traded the rally live in the webinar, to Daily Resistance Level 1, banking a combined Take Profit 1 & 2 of 30 pips. The same trendline setup another beautiful Surfing The Pips entry short a little later but News prevented us trading the setup and we were happy to keep our profit for the day. Multiple News events sent the market into overdrive firstly in a short sharp Bearish move of 75 pips & then a huge bounce of Weekly Pivot to the tune of 145 pips. Quite a volatile day that saw a continuation of Tuesday’s rally.
The BIG question of course is “Rally or Retracement”? I’m certain there are varying opinions on that subject. I can see evidence of a reversal mounting with higher lows and highs and even the hint of an inverted head & shoulders. Daily Pivot seems happy being above Weekly also. If only those factors counted – I’d jump on a Bull’s back and ride, ride, ride. However, the Sword of the Toreador threatens, in the shape of the big picture bearish trend and a continuation pattern for that trend, in the shape of a flag. Pivots are mixed and not helping to enlighten the scenario so we must wait until more evidence arrives. Helping us decide today, is an untested Daily Pivot but very little in the way of trendlines. Whilst I have a Resistance line near to Price Action, it’s not my favourite and the only Support isn’t within a Bull’s Roar. Perhaps Price Action will produce something a little better for us as the morning progresses?
The Day Ahead
I’m very non-committal today and am only favouring shorts a little due to the Daily Pivot standing all alone. Once it gets company, things may change. Like the good Scout – I will Be Prepared and see what Price Action delivers when it comes to my lines, or creates new ones.
Enjoy the day – that’s why it;s there.
Geoff Pyne | Certified SurfingThePips.com Trader
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