Welcome to the video update for Monday, August the 30th. First chart up is the EUR/USD pair weekly chart. Still no valid 9/30 setup but look at the indications that we may see higher prices. Or will we? The daily chart has a bearish bias. If price moves higher watch the price action in the sell zone. Slow sto and the 3x indicator are both down. Note where resistance is to the upside.
Trader Rick normally doesn’t comment on the 30 year bonds or the 10 year notes but if you are a bond trader take a look at the weekly chart. What is the candlestick that formed last week? Any divergences? See what the daily and 60 min charts are telling us.
Next up is the S&P cash daily chart. If prices move higher watch the 1080 to 1083 zone for resistance. Be sure to take a look at the 60 minute chart where Trader Rick spots a potential dragon pattern. Watch if this pattern plays out or not.
Knowing market structure on the ES chart helped Trader Rick spot a possible buy setup in the first hour of trading last Friday. We had daily support at the 1037 area, plus the 1.27 fib extension on the globex 5 minute chart came in at 1038.25. The 4800 volume chart provided the entry off a buy divergence at the lows of the day. This was Trader Rick’s only trade on Friday.
Watch the 1083 area in the ES for overhead resistance.
Good trading!