Back to Support, now what?

Daily Chart

It's taken a 'Few' weeks but the wedge breakout has arrived at the intended zone for the bullish scenario on the plan which started at the red vertical line(original chart below). So "If" this is to continue on its bullish course this zone should hold and price needs to rally from here. As of right now when we get the chart update in Asia price will still be below the Daily 5 and Stoch's should be pulled down into the sell zone. So the bulls should start trade plans to buy this pair down at support in the same way outlined in earlier posts using the 15 min as price has several reasons for support in this zone as the stoch cycles down..

15 Min Chart

Will price sling shot up or take a couple of days to get a rally going can be best seen and planned on the 15 min. Right now the macd has energy to the downside and resistance up by the 233 ma (Daily 5). A possible bullish scenario is planned out 'should' the bulls take control again and price rally above the 233 ma. Lets see how this develops over the next 1-2 days.

Daily Chart

This is the daily chart from a few weeks ago where the plan was originated. Notice how stoch cycled down into support. "Then" the 15 min was used in earlier posts to get into the rally early. Can history repeat and get into a trend early?

3 thoughts on “U/C Update 7”

  1. Maryna says:

    Hi James, on Wednesday the pair closed with a shooting star, hence the sell-off. It’s also testing the upper trendline of the wedge and possibly a false-breakout from the wedge. The pair is overbought and retracing, but I suggest you keep an eye on the re-test of the upper trendline of the wedge as that will confirm if the breakout was false or not. Interesting to see that the price of oil has dropped and so has USDCAD – a sign that USD is weak and the “Dollar chart” ended the week with a big bearish candle on the Weekly and Daily charts on Friday. It was also the last trading day of the month on Friday.

    1. James Mauro says:

      Hi Maryna, yes that’s basically the plan I have laid out on the charts above and for the bulls to take control again this support zone needs to hold. I wouldn’t say oil & u/c are positively correlated tho since oil has approx 14 red daily candles for July and u/c has approx 14 green ones. I don’t study Steve Nison etc.. or use candle patterns as an entry/exit signals, check out the same candle on July 18th that wasn’t valid for a sell off. Lets see how this plays out over a day or two. Hope to see some plans you’d like to post. Thnx for reply

  2. Maryna says:

    Hi James,, great stuff! I have posted quite a number of trades on activity last month and they all hit target, but I think the traders fear GBP crosses and not taking these trades!

Leave a Reply

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