Welcome to the video update for Monday, May the 24th. Continue to trade conservatively while volatility remains in the markets. First chart up is the EUR/USD weekly chart. Price broke the lows back in late 2008 so we shall see if price finds support here, resulting in a short term rally in to the overhead sell zone. Note the target of the ab=cd pattern if that plays out. Be sure to look at the daily and 60 min charts if you trade this forex pair.
If you trade the Canada please note the near term support levels. The dragon pattern remains intact which means we have unmet overhead targets. Also, when I point out setups on currency charts that they apply to the related forex charts. So when I talk about the Canada charts, look at the USD/CAD forex charts for similar setups. I heard from one trader who took full advantage of the 9/30 conservative short setup on the daily Canada chart but traded it on the forex. Great job, by the way!
Trader Rick discusses the weekly crude chart and points out near term support levels. Overhead resistance levels are pointed out on the daily chart.
In gold, watch where price closes this month on the monthly chart. We have a possible doji forming along with a bearish divergence. If you trade gold please remember we are rolling to the August contract (Q) later this week.
Next up are the stock index charts with the Dow monthly chart up first. It is quite possible price will find support in the buy zone before continuing higher but we are in area of resistance at these levels. On the weekly chart we are watching the 9835 level for support. If that is taken out, look for a possible trend change to the downside.
Note that the Dow (YM) and the NQ did not make a new low this past week while the ES and ER did make new lows since the May 6 crash low. Trader Rick shares two possible patterns that may be forming.
Final charts are the ES weekly, 203 minute and 60 minute charts.
Good trading!