Tom Hall Market Review #8 - Tuesday, 26 March 2019
Euro / Japanese Yen
The rejected Weekly horizontal structure resistance at 127.30 confirms my Monthly bearish thesis.
Additional protection of the 61.80% Fibonacci retracement, 50EMA, and 200EMA provide a clear trading zone.
The Daily and 4-hour ascending trendline break and retest at 125.00 provides a level of interest, from both an entry and stop loss perspective.
Additional confluence includes a Fibonacci cluster and the Weekly Pivot.
The positive comparative to the negative confluence is enough to justify a trading opportunity. However, the minimal reward given the lack of structure requires a timed entry on the intraday timeframes.
I will continue to monitor the development of price action throughout the week.
Bitcoin
I previously outlined in Market Review #5 that predicting Bitcoin's next significant move is immensely tricky; the equilibrium between buyers and sellers confirms the indecision approaching the descending trendline dated 30, April 2018.
The Daily ascending trendline was breached on the 25, March 2019; this provides an early indication of the potential downside in the coming weeks.
You can never be too cautious trading indecisive markets; Its paramount patience is the priority as we await clear direction.
Gold / U.S. Dollar
The request from traders to provide my opinion on the development of Gold has increased in recent weeks, the head and shoulders formation developing on the Daily timeframe has been at the center of question.
Drawing a descending trendline connecting the neckline of the head and shoulders formation immediately outlines why it's not an optimal formation to trade.
The angle is too severe and would require a decline from 1320.0 to 1270.0
This would require an overextended run that would inevitably eat into potential profit.
Trading the common neckline breakout would require a significantly substantial stop loss above all structure levels.
In my opinion, this particular head and should formation has no profitable edge, the lack of structure in addition to the large risk comparative to reward invalidates a trading opportunity.
Euro / Japanese Yen
The rejected Weekly horizontal structure resistance at 127.30 confirms my Monthly bearish thesis.
Additional protection of the 61.80% Fibonacci retracement, 50EMA, and 200EMA provide a clear trading zone.
The Daily and 4-hour ascending trendline break and retest at 125.00 provides a level of interest, from both an entry and stop loss perspective.
Additional confluence includes a Fibonacci cluster and the Weekly Pivot.
The positive comparative to the negative confluence is enough to justify a trading opportunity. However, the minimal reward given the lack of structure requires a timed entry on the intraday timeframes.
I will continue to monitor the development of price action throughout the week.
Bitcoin
I previously outlined in Market Review #5 that predicting Bitcoin's next significant move is immensely tricky; the equilibrium between buyers and sellers confirms the indecision approaching the descending trendline dated 30, April 2018.
The Daily ascending trendline was breached on the 25, March 2019; this provides an early indication of the potential downside in the coming weeks.
You can never be too cautious trading indecisive markets; Its paramount patience is the priority as we await clear direction.
Gold / U.S. Dollar
The request from traders to provide my opinion on the development of Gold has increased in recent weeks, the head and shoulders formation developing on the Daily timeframe has been at the center of question.
Drawing a descending trendline connecting the neckline of the head and shoulders formation immediately outlines why it's not an optimal formation to trade.
The angle is too severe and would require a decline from 1320.0 to 1270.0
This would require an overextended run that would inevitably eat into potential profit.
Trading the common neckline breakout would require a significantly substantial stop loss above all structure levels.
In my opinion, this particular head and should formation has no profitable edge, the lack of structure in addition to the large risk comparative to reward invalidates a trading opportunity.
