20 Jan This Week’s Swing Trading Round – Up; 20th January 2013
Just a brief update this Week and unfortunately no charts due to internet connection problems corrupting uploads to the site.
Again I spent most of this Week day trading but observed that it’s been more difficult to maintain the gains of the previous 2 Weeks mainly because we’ve not had any volatility in Indices as they’ve been trending, but trending slowly! I didn’t want to participate in longs beyond DOW 13,600 due to overbought conditions whilst neither was there any reason to go short.
The one swing trade I did take was an interesting one. As you know, I became very interested in buying the support levels on EUR:USD and GBP:USD detailed in this post, and whilst I’m waiting for these levels to be achieved I felt the risk/reward was worthy of shorting GBP:USD in particular for it’s journey down to that target support. On entering the trade I realised there’s potentially good Daily support at 1.5980 which I’d forgotten about when writing last Week’s analysis and it didn’t take price very long to get there, so I just banked the trade taking an 85 pip profit.
In the event, Cable did slice through that support and end up right on my desired long entry target, but a profit is a profit and it was quite an opportunistic one so I’ve no regrets. Of course, now I’m watching with the consideration of entering long GBP:USD, and possibly EUR:USD too as that’s also at support, but I don’t think there’s a rush to enter these positions so will watch for a day or 2 and see how things play out.
2 other trade set-ups analysed last Week also turned out to be great ones, USD:CHF and GBP:CHF. Unfortunately I didn’t get my timing right to enter at low risk levels so have probably missed these but will keep an eye on them this Week as there’s still potential. If you did manage to get in on these rallies you did well, and probably racked up some great profits very quickly too.
In the short term there’s unlikely to be much going on Monday with U.S Markets closed, and Tuesdays sentiment following M.L.K day could go either way. I certainly think bears are in with a chance of a pull back in Indices this Week as statistically this is a bearish Week compounded by the fact Indices are looking a little overbought in the short term.
Hope your trading has been going well and you’ve enjoyed the snowy, freezing cold Weekend!