G’day Surfers, I do hope today’s Daily Brief finds you healthy, happy and hungry for pips
On a day that produced many ups & downs, the StP strategy showed its strength not only by recognising a good entry but by using the final step of the 7 holy ones, nailing a perfect exit just prior to price action reversing dramatically. This was a great example of how exiting at first support/resistance can save you from a losing trade. So a nice combined TP1 & 2 netting 22 pips in the bank despite a tough market that continued its snake like consolidation around DP and our major S/R level of 1.3115.
With the market in lateral mode our Pivots remain in perfect Bearish formation with DP opening a gap of 77 pips below WP, which is 70 pips below MP. Still, I haven’t seen a lower low than 1.3005 nearly a month ago. The test from below, of the major support trendline (broken last Thursday) is yet to occur as price action struggles to break back above our major 1.3107 S/R level which is being tested as I write this, for the 4th day in a row. As per yesterday, I feel this test is imminent and I will be watching for potential entries counter trend to accommodate (small stake naturally). This re-test is crucial in my opinion, to give the market direction. If we see a re-entry above this trendline, expect the Bulls to take price action back to 1.3285. Rejection on the other hand, will put 1.3000 under more pressure.
The Day Ahead
Given the above scenario, I’ll be looking for the convergence of our major resistance level with my intraday trendline, around WP level @ 1.3170 as Hotspot#1. Looking for this strong support to catapult price towards the major support trendline. I would prefer to see a break here, then a re-test from above, creating an ABC for the counter trend long. Plan B will be to play either Hotspot short, should StP Secret Patterns present. We should be in for an interesting day.
Have a fun and take care.
Geoff Pyne | Certified SurfingThePips.com Trader