Hello traders,
Today being a Friday, let’s concentrate on this pair. Remember last week even after a previous weekly bear candlestick, NZD gained massive ground against the CAD and our stops were hit. Today, we again revisit this pair with more confidence given the sync of our technical indicators and resistance lines.
On the daily chart, there is an overbought stochastics and a sell signal has already being printed. This is also forming at a strong resistance zone where the monthly and weekly resistance lines form a confluence. Also note, this is the fourth time price action is testing these levels in the weekly chart and that’s not all, there is an overbought stochastics with a sell signal printed some weeks back, so it is very significant for us.
Yesterday’s candle was bearish and it reversed at the 0.9580 zone after Wednesday candle closing like a morning star formation. This therefore means that there is a bearish momentum on the way.
Today, I will trade as follows taking trades from the 15 min chart:
Sell: 0.9555
Stop Loss: 0.9570
TP: Trail your profits
Have a good trading day and a nice weekend.

NZDCAD 15 Min chart-28.10.2016

Source: Dalmas Ngetich

NZDCAD Daily chart-28.10.2016

Source: Dalmas Ngetich

NZDCAD Weekly chart-28.10.2016

Source: Dalmas Ngetich

3 thoughts on “NZDCAD TRADE PLAN-NZDCAD DAILY ANALYSIS FOR 28.10.2016”

  1. Brendon Davis says:

    It would help if the oil would drop a little. The pair being both comdols, do don’t find this being an issue? You say it your notes to trail the stop/profits how do you do that?,
    Great charts and look forward to your reply.

  2. Brendon Davis says:

    So oil Cadillac down… You thinking up oil from here?

  3. Dalmas Ngetich - FOREX.TODAY says:

    Hi Brendon, thanks for your comment and complements. appreciated and its always my pleasure.
    Indeed, these are comdols and sensitive to the current oil prices and USD. I really think, in my opinion that that commodity prices will strengthen in the long term based purely on the interest rate hike talks from the USA. Look, since after financial crisis, prices of commodities nosedived after QE and rate cuts, right now any talks of hikes always spurs the commodities. so far, gold 25% up from December rate hike.
    At the moment, look at the weekly chart of Oil futures, there will be price scaling back towards the $40 mark as the 14,3,3 stochastic are overbought and a sell signal has already formed. That’s not all, a strong bear engulfing bar formed, a bar that engulfed the previous three weekly candlesticks. Prices of oil will retrace in the mean time but rise in the long time but in the short time, oil will drop a little bit and thereby be supportive of your view.
    in my notes, by trailing my profits, I mean I recommend application of a trailing stop rather than SL. this flexibility will always ensure that your positions are secure in case of flash moves-like those of recent GBP deep in the Asian session. since I trade daily charts, I trail my profits with a 70-80 pips trailing stops depending on pair traded.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.