The DAX Monthly chart recently broke upwards from a multi Year Ascending triangle.
The break out level 0f approximately 8140 is just about to be re-tested. If support is found the subsequent move could be very interesting. If the current pull back turns out to be a major top then one can only assume this break-out was a fake-out.
It has been a Week since my last Blog post and the drop in traffic to the site after 3 or 4 days without an update is fairly significant, but please remember, I only want to talk about stuff that's worth talking about with a view to an imminent trade. I go through many charts each day and do miss a fair few set-ups that turn out to be great ones but don't see a lot of point in talking about great trading set-ups unless I'm prepared to put my own money on them. I'd rather do this than flood the site with advice or recommendations that I simply don't feel absolutely confident about investing my own money into.
I put so much energy into day trading the volatility over the last Week that I actually missed out on some reasonably good swing trade set-ups that were previously discussed here. One of those was AUD:USD for a swing long, I actually entered that position but got frightened out of it for a small profit as the markets became quite uncertain and jumpy surrounding Cyprus and Europe news.
Over recent Week's Cable has been trading a relatively large range of approximately 400 pips. The overall trend on the Weekly chart is down, but on smaller time frames there is no trend at the moment, only a range that will eventually break into a trend.
Whilst price is trading in a range it's relatively common for traders to make a decision as to the outcome of that range, but in reality the range itself is proof that there is indecision within the Market. The only way to capitalise on that indecision is to ignore any overall directional bias and play the range as it forms.
In the case of GBP:USD on shorter time frames that range has run a sequence of marginally higher lows whilst resistance has been repeatedly found at 1.5736 region. This could be indicative of an ascending triangle formation or looking at the chart the possibility of a bullish inverted head and shoulders pattern, but in reality these potentially bullish patterns can fall apart through time decay.
Therefore, the long position I've taken from
GBP CAD is one pair that really hasn't responded to my previous analysis. I loved the idea of the Daily Ascending Triangle formation that would finally form a break-out from the 12 Month trading range. Thus far, that hasn't come close to materialising and further technical damage has been done since.
Because of it's choppy nature and wide spread,
I've been itching to post about my long term outlook for GBP:CAD for ages now and have been running a couple of small trades on and off the long side for a couple of Months now but haven't reached the level of confidence required to really jump into these in size or with real commitment.
Now that might be changing and here I present you with a trio of trading opportunities to make the most out of a bearish Canadian Dollar.
What a tough week it's been from a swing trading view point!
Woke up Monday morning, checked through the Watch list and the set-ups were coming together nicely, but by Monday afternoon everything seemed to be falling apart and I had one of those days where I started thinking all my TA posted last Weekend was a complete waste of time!
As with most of the analysis I provide for any of the Indices, it will most likely apply to all of the major Indices unless specifically stated otherwise.
This particular analysis is a tough one to post because of course, I don't like being wrong, yet practically all analysis I've read this weekend has a predominantly bearish short term outlook.