Dollar May Be Ready for a PullbackSome Bearish signals are lining up for the US Dollar Index. What do you see? Would like to see some comments/opinions. Thanks. Happy Trading.
Doji
Cute Little Gravestone Doji (Almost)Right now the market has been unable stay above 476 very well. There are many other indicators that are getting bearish as well.
The one thing I was noticing when the candle was about to close was that it was on the edge of shooting star and doji. It ended at a gravestone Doji (almost) which means it closed and opened around the low. What this suggests based upon the candles before it is that the buyers are exhausted. They are running out of steam, and that can be seen in the volume or lack there of it.
Stoch has come to a point of being overbought for a few hours. Add to that that on many other time frames that indicators are showing how overbought we are I'm thinking there may be some downward pressure ahead.
PSAR is going strong which may be why we are stuck on the balance between going nowhere and nowhere.
Forgot to mention ATR when publishing this, but it has peaked upon that Doji which means there is now a STOP in place for the uptrend.
There is a possibility to clip a little higher, but for now I'm more bearish. My target that I am aiming for is 462.3. I don't see us getting higher than 475 for the moment. Baesed on that it will take a few hours as everything sets up on the longer time frames. I did not like what I was seeing all the way up to the 4H charts. Bearish signals going off.
HLF Putting in a Bottom, But in Need of Buyers!The 50 support has held up before and today's close may indicate that it won't breakout short. I think the best the bulls can get now is a trading range while the bears may begin to cover at support (50). There has been very little buying pressure for the past month. Longs also resisted 68-70.
Shorts (which have ruled for a month) are indecisive based on the doji bottoms and sluggish momentum. I would cover here if I were short.
Two proprietary indicators are putting in bottoms also, so that helps.
It will definitely be a weak follow through unless a short squeeze will follow. The next minor resistance is 54.50-55 which would be a nice 10% move.
Will be watching for a bull reversal setup for a long.
MRK Tight Consolidation Break - Long/Short (SAR)As I point out in the chart, MRK is in a very tight consolidation here. With the RSI holding inside of bullish territory after it's recent bounce off the 150EMA it has run into previous resistance. This resistance coincides with a sort of ascending triangle based on the higher-lows it has been making since March '14. This pattern comes to us after a long run up from Nov '13, leading me to have a bias for this play to the upside.
The goal here is to watch it intraday and get long one tick above the most recent bar high ($59.37). Alternatively, we will get short intraday at one tick below the most recent bar low ($58.89) and holding it short expecting a bounce off of the resistance.
The idea is to SAR (Stop & Reverse) the position on a close one tick above/below the same high/low, depending on how we entered.
This means we have $0.77 cents of risk either direction. With a target on the downside around $56.30 and to the upside $64.75 by conservative estimates, that gives us a favorable risk reward. All said and done, the thinking here is that with this tight consolidation at a key level, a big decision will be made here in the coming days, that will make a big play for us. What happens after these candles could be the deciding factor, and we may even see a candle that reinforces one direction over the other to help us in our decision.
GBPUSD Forming Doji At TrendlineGBPUSD is in the midst of an uptrend, but has pulled back to a major trendline where it is forming a doji candlestick pattern. We also find a previously established horizontal support level and the 50 SMA in the close vicinity. As such, I think now is a good time to enter, as this might be a level bulls will step in to defend. I've set my entry to 6685 with my stop loss at 6625 and my target profit at 6985. I'm risking 60 pips to gain 300, so this setup offers q 5:1 reward/risk ratio.
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EUR vs CAD Doji at SupportLooking at the EUR vs CAD on the daily time frame we can notice two days of indecision for the pair since the bearish fall from prior resistance at 1.53019. The indecision is noted with the two doji's formed at the support level at 1.49114. Doji candlesticks represent indecision as neither bears or bulls control the market. Prior to the doji at support the market had four decisive bearish days closing out with a long bearish candle near the support level. This level appears to be a level were buying pressure is present as the momentum turned quickly from bearish to neutral at this point. I look for the support level to hold and the market to bounce from here and attack the top of the range at 1.53019 long term. If price closes below the support level then we know we are wrong and we look for the support to become resistance and find another opportunity. Have a great trading week and God bless!
Gold found support and looks ready for move higherFrom the beginning of the year gold was in uptrend from $1179 to $1392 (around 20%) then sold off from highs but found some buying support $1268-$1278 (around 50%-61.8%).
ENTRY:
This pullback is still controlled and with this
1) doji candle bounced off from support zone it gives me entry with tier1 then
2) I will add if it will hold above moving averages ($1300) and
3) another point will be break up of trend line @ $1310
STOP:
1) below low of doji @ $1277.13
2) below $1268 support zone's low
TARGET:
1) 200 MA @ $1320
2) swing high @ $1330
AUD vs JPY Doji at SupportLooking at the AUD VS JPY we see price stalling at support @ 95.151 as price has formed a doji candle stating indecision and stalling momentum. Look for a close above the doji candle to enter a long position. If price forms a lower close then we know we are wrong and we do not enter a trade. Keep in mind that a doji candle is not a reversal signal but rather indecision. A conformation would be a close above the doji as price would then show that the buyers have entered the market and attempting to take over. Have a great trading day and God bless!
