This Week’s Swing Trading Round-Up; 1st December 2012

This Week’s Swing Trading Round-Up; 1st December 2012

A number of swing trade candidates I’ve been watching have closed the Week at resistance or support. Buying and selling at these levels is usually sensible but before committing to new trades I’ve been waiting for further confirmation as some Markets have shown enough potential strength/weakness for those supports and resistances to possibly get taken out. So in the mean time I continue to watch and wait.

2 trades I currently hold include a EUR:CAD long and a DOW long.

EUR:CAD was specifically based around entering a trend using support from the 200 MA on the 4 hourly time frame as a guide line. So far the trade has performed very well and goes into the Weekend showing 90 pips profit. However, due to the nature of the trade and the fact it doesn’t really have a well defined target, I’m very aware that those profits could be lost quite quickly were it to reverse so for now it remains as a trade I need to keep an eye on.

Similar story with the DOW long from 12,870. The initial target for this trade was 13,045 which was achieved very quickly so I covered half of the position. The remaining half is still open but price has still not been able to advance beyond that key Hourly resistance level.

With Monday being the first trading day of a new Month it might be crucial to how December will ultimately perform. The famous “Santa Rally” usually finds it’s footing in the latter part of November or the early part of December. If the Santa Rally theme plays out this Year, my DOW entry could be brilliant, but any weakness over the next few days will probably get me concerned, putting me off risk-on trades for the time being.

In conclusion I think the next few days will be interesting to watch ahead of any new themes developing, whilst I continue to watch USD:CAD and GPB:NZD for early signs of changes in market sentiment.

Hope you have been trading well and enjoying you’re Weekend.

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