This Week’s Trading Review & Gold, Indices, AUD Analysis; 19th May 2013

This Week’s Trading Review & Gold, Indices, AUD Analysis; 19th May 2013

It has been a Week since my last Blog post and  the drop in traffic to the site after 3 or 4 days without an update is fairly significant, but please remember, I only want to talk about stuff that’s worth talking about with a view to an imminent trade. I go through many charts each day and do miss a fair few set-ups that turn out to be great ones but don’t see a lot of point in talking about great trading set-ups unless I’m prepared to put my own money on them. I’d rather do this than flood the site with advice or recommendations that I simply don’t feel absolutely confident about  investing my own money into.

This leads me onto the EUR:NZD swing long that has turned out to be a great trade over a relatively short period of time with half profits being taken at the first target of 1.5798 for +243 pts, and the 2nd half closed at my final target of 1.5914 for a profit of 359 points. This gives an aggregate overall profit on the trade of 301 points which I’m quite satisfied with considering the run of fairly small profits I’ve taken so far this Year.

This EUR:NZD chart shows the target levels, the first being a gap fill and the second being a level of resistance at 1.5906:

EUR NZD 4 hourly 19th April 2013

Whether it would have been sensible to just trail the stop on the 2nd half only time will tell, but arguably I’ve a good overall track record of nailing targets so generally once achieved I’ll close the trade and forget about it.

Gold still remains the most regrettable trading decision of the Year…… After 2 Weeks of going nowhere I gave up on it for a tiny 32 points profit, and here we are a further fortnight later with price 1200 points lower than my entry! So frustrating!

I still think the original ‘crash’ low will be taken out too, even if only briefly.

Gold Daily 19th May 2013

Moving on to currencies and AUD has been a great one to watch recently. In fact I was very close to shorting AUD:CAD a couple of Weeks back but was put off the idea due to perceived volatility that may occur with Stephen Poloz as the new Governor of the Bank of Canada.

That aside the Austrailian Dollar is looking particularly oversold right now and a number of pairs are at levels ideal for a rebound of some type which I may look to trade over the coming days. Here’s a few AUD charts of interest.

AUD:CHF

With price at the bottom of its long term range this will be worth watching with a view to trading a rebound if this support can hold:

AUD CHF Daily range 19th May 2013

AUD:NZD

There could be a decent rebound from this falling channel, the prospect of which being supported by Positive MACD divergence:

AUD NZD Channel support 19th may 2013

EUR:AUD

This higher high looks a bit suspicious to me and if we can see a doji or 2 here over the next few days I may be interested in a short entry targeting the 2 highlighted levels:

EUR AUD Daily 19th May 2013

Indices, DAX and DOW

Indices have been in a world of their own recently and if you’ve been consistently long you’ve obviously done very well. I tend to day trade Indices rather than Swing trade them unless a long term set-up is really compelling.

This long term Monthly ascending triangle on DAX looks stunning and I would be interested in buying a retest of the break-out level:

DAX Monthly breakout 19th May 2013

Moving right out to the very short term, I’ve been day trading this 5 minute DOW chart (in conjunction with channels on the Hourly chart which I wont discuss here right now) and again, we have an ascending triangle break-out here as well and for my next trade I’ll be looking at the possibility of 15,302 becoming a future Support/Resistance level. If price breaks down and goes straight through it I’ll probably consider the break-out as a fake out and switch to the short side:

DOW 5 min support 19th May 2013

So in conclusion its fair to say I’ve missed some great trading opportunities but was quite pleased with the EUR:NZD outcome. Going forwards I think there will be some scraps available through trading some of the above mentioned AUD set-ups over the coming Week.

In the meantime I hope you’ve had a great trading Week and enjoying this sunny Weekened!

1Comment
  • RS2OOO
    Posted at 00:11h, 20 May

    Starting early, I’ve entered Long AUD:NZD at 1.2044, other than the possible channel support and the early stages of MACD divergence, there is no proper confirmation that the trend will change here, but on a risk/reward basis I think this is worth a try.

    First target will be 1.2143 with stops currently placed below the Daily channel.

    If I start to doubt the trade, I’ll close it quickly in order to cut any potential losses.