- Eur/usd pair has broken the upward moving channle it was trading in.
- I was expecting resistance to come around 1.26 or near the ichimoku cloud. But the resistance has come even before that.
June 21, 2010
- Dow jones had no problem in crossing the 50% fibs.
- It made a gap up above the crucial level.
- Now this 50% retracement level should give it good support.
- If dow closes above this retracement number it will be very positive news for the bulls.
- And under normal circumstance the 61.8% retracement should be the next target or the next resistance. I should say target because nothing seems to stop the market for the last two weeks.
- Dow jones is trying to go above the ichimoku cloude.
- In daily chart if an index or stock trades above the cloud it is considered to be very bullish sign.
- So if dow jones closes above the cloude today it may stretch this rally to new high's.
China is all set to be flexible on yuan's exchange rate. And this traders seems to be getting into risky assets because of this move. On monday the Yuvan rose to a 21 month high. The u.s treasuries fell on this news.
Asian currency's and stocks were trading higher on the news. Cude rose 2 percent mainly because this move may lead to china consuming more oil and more petroleum imports into china. And one main thing is this will ease some political tension with the west which will give traders some more confidence to invest in riskier assets.
|MARKETS||CURRENT||CHANGE IN PERCENTAGE|
HANG SEN 40
- The above chart shows nifty daily line chart.
- It shows an upside break out from a wedge pattern.
- So today's closing price is very important.
- Bulls would need a close outside the pattern on the upside. While the bears may try to pull it back ito the pattern.
- The first chart shows that the 50 day moving average is waiting to cross below the 200 day moving average. The cross known as the death cross.
- This will be a negative event for the stock if it happens.
- The immediate resistance for the stock seems to be at 68 to 70.
- If the death cross happens one can wait for these levels to come or a retracement back to the 200 day moving average.
- Wait for the correct entry. If it does not come don't trade. Smart traders always trade less. They wait for the correct entry. If they don't get that entry they look at other opportunities. And always remember market always gives you another good opportunity.
- Euro has been moving up strongly.
- Right now trading in an upward moving channel.
- One can hold long as long as the channel holds.
- The pair will find resistance around 1.26. This area being the previous resistance level and the daily ichimoku cloud is placed there too.
- So for more upside targets the pair has to trade strong and break this resistance.