FOMC minutes made every dollar bull screaming like Frankenstein movie, "It's Alive!". So if rate hike odds at June meeting are suddenly higher than obvious question comes to mind is, 'What about USD/JPY?'. It has already put cracks on dreaded 110 resistance and now traders will start looking for 112 and 114 levels. If you want to take a leap of faith then there...
As we have mentioned many times and it's hackneyed fact in trading that the identification of proper Support / Resistance levels is the key for success in trading. You can see the perfect text book like example here on NIFTY 30 min chart. Few days back we put up an idea here for shorting NIFTY from 7775, then on the news of taxing Mauritius based investments we...
After a huge up move in the first half of 2015, IRB Infrastructure has spent rest of the time consolidating in flag like pattern, roughly between Rs. 200 and 280. Of course it's difficult to pick long term direction for a stock with such explosive volatility exhibiting trips from 60 to 300, twice in last few years. To trade IRB Infrastructure, it requires...
Euro is not able to make up its mind about the further direction and EUR/USD is drifting around 1.1380. 1.1420 looks like a good resistance level for quick short grabbing few pips. As long as 1.1360 holds, another test of 1.1500 can't be ruled out. Strategy is to first short it at 1.1420 and get few pips. Then wait and see how that works. If dips are supported...
We have to say that we were lucky to grab some longs between 105.50 / 106 level, which was kind of leap of faith assuming 200 WMA will hold for session or two if not longer. We didn't anticipated bounce this big and offloaded most of our longs near 107.50. It is interesting that USD/JPY is having such a nice bounce even during US Treasury yields are tumbling and...
Today's news about taxing Mauritius based investments in India is going to gyrate the market for some time until we digest all details and know the full impact. Even though today we saw a sharp drop at the open, no wonder where it the drop stopped ! This is an example of how to find good technical levels to trade against. Last Friday we shorted NIFTY from 7775 and...
If you are looking for an example that how quickly things change in Forex then this pair comes to mind right now. Even we did a post on how to short Euro using EUR/AUD rather than getting involved in choppy EUR/USD ! LOL But well, as everything is ephemeral, that was a different era ( Sometimes a week is an era in Forex !) We were convincingly short EUR/AUD from...
Latest musings from Ira Sohn conference is out now and Hedge Fund Wizard Stanley Druckenmiller likes gold ! We did a detailed post on gold about a month ago ( Gold has no silver line - 3/23/2016) and mentioned why we like to trade it from short side instead of just piling in longs and wait for some central bank to ease further. Well, Stan may be right for the...
Well, the answer is - Both ! Before we get into other details let's mention today's potential short opportunity between 7775 - 7800. This resistance can give us few points today. We mentioned in our previous NIFTY trading post to get short NIFTY near 8000 and now we have covered majority of our short positions. Now we will be looking to trade NIFTY from short side...
Today's FOMC outcome will rattle the markets, it's just we don't know which way! But even if we don't know the outcome of the directional moves, we can still trade it and extract few pips from that. The answer of how we can do that is, by identifying good support and resistance levels to trade against. From these levels, price can at least bounce for few pips and...
JPY has history of disappointments. In the past, every news of intervention has given it a pop of few hundred pips, only to give back everything and some more during later sessions. Well, drastic policy change is a different thing than one off intervention. Forces which catapulted USD/JPY from 75 to 125 are being stressed now. With Fed and BOJ on the horizon,...
At the beginning of the month we were looking for the opportunities to get long crude, which we got after publishing our last trade idea here. ( please check the linked idea ). Our longs between 35 and 36 have reached its final target of 44. Now between 45 and 50, we are not certain about the price action. We would like to trade according to the following...
Further bounces towards 8200 should be sold in our opinion. NIFTY is going to provide ample trading opportunities between 8000 and 8200 range in coming sessions. But any healthy bounce will meet with good selling interest. So it would be wise not to get sucked up in faux strength and sell the bounce from appropriate levels. We mentioned trading between the ranges...
Stock of Adani Power Ltd has been consolidating in twenties for almost a year now. As the trading aphorism goes, which can't go down is going to go up. Resistance at 35 / 36 is significant and it has stalled the progress at the beginning of the year. But for last two months, dips have been fairly support and now pressure is building up. Support at 30 and 32...
Many have been trying shorting Euro with EUR/USD and getting chopped in the range. Best pair to short Euro in our opinion is EUR/AUD. We have been short this pair from 1.5100 and after 500 pips gain, we still believe that there are more 400 / 500 pips to go. Reasons we picked this pair are, 1. If US dollar becomes weak, then of course both EUR/USD and AUD/USD...
Will 0.7620 support be able to hold the fall again today?! To cut it short, we are looking for buying opportunities in this pair first near 0.7620 and then near 0.7600. As we have seen earlier, even if these levels don't hold for long, we will be able to gain few pips.
British pound is untouchable until it reaches proper levels. Try to trade it in between and you are surely going to get burn. Today's level from buy side is 1.4140 / 50. Of course first hurdle is 1.4200 so let's focus on it first and then 50 pips below. Keep in mind that 1.42 trade can be quick few pips trade or can hold for bigger jump. Depending upon the price...
NIFTY's price action is baffling to many. In general retail traders are confused about ups and downs of the market lately. But well, they always are, aren't they?! If you look at the chart technically, there is little to be confused about. Few days ago we mentioned 'playing the range' in NIFTY. And now we are inching closer to the upper range. There is no...