Welcome to the video update for Monday, February the 28th. My apologies for the delay in sending this to you. A computer problem had to be resolved which took too long! With the end of the month we will take a look at some of the monthly charts as well as the shorter timeframes. First chart is the weekly EUR/USD pair where this past week closed higher than the high of the previous week. Bullish. See why the 9/30 short we have been talking about for several weeks is no longer valid. On the daily chart IF a lower high is in place, then look for a potential ab=cd with a D target of just above 1.3400.
Looking at the monthly gold continuation chart, price is forming an inside candle, indicating hesitation. IF price pulls back look for a buying opportunity in the buy zone. The weekly chart shows price approaching resistance in the 1424 to 143o area. Watch this level closely. Trader Rick reviews the ab=cd pattern on the daily gold chart. The 1.618 fib extension provided support and price has been rallying since. The crisis in the middle east, and particularly in Libya sent gold prices sharply higher this past week. Very important to understand and watch price action. Price traded all of last week outside the upper keltner channel, telling us that the momentum is strong to the upside currently.
Do you know the megaphone pattern? Take a look at the corn 60 min day session only chart where price may be forming a megaphone pattern. Is this bullish or bearish?
In crude, the monthly chart shows price in the upper end of the fib zone, so it will be important to see what price does from here. Will it go to $220 which is what is being suggested in the media this past week in light of what has happened in Libya? Support on the weekly comes in just above $87. The daily chart in crude showed price trading all week outside the upper keltner channel. Very bullish price action. Support on the daily timeframe comes in just above $93.
In the stock indexes, looking at the ES monthly chart, price continues trading completely outside the upper keltner channel. Bullish. If you follow floor pivots, see what Trader Rick has to say about the yearly floor pivot levels. Very interesting and worth keeping in mind. Last chart is the 2 bar per day in the ES and Trader Rick is watching price that is now in the sell zone. Overhead resistance comes in at the 1322 to 1323 area. This matches up with the sell zone on this timeframe so worth watching. Note: Since this is late going out, the open gapped up above the resistance zone and should now be support.
Good trading!
Tags: 1.618 fib extension, ab=cd pattern, megaphone pattern, outside the keltner channel, price action
Leave A Reply (No comments So Far)
No comments yet