Financial markets were today relieved at a deal to avert the US fiscal cliff crisis. The US Congress approved a rare tax increase on the wealthiest households to prevent the US economy falling into recession. However, it is far from over as a rocky period begins. All eyes are now on the negotiations to avert the US debt ceiling which is scheduled to hit on the 28 February. However, we trade the chart and look at momentum and sentiment.
The risk on mode from Asia helped our NZDCAD trade which if traded on the 4hour chart is currently up 3% (assuming 1% risk). If traded on the daily chart then it is currently up +1%. The former would see stop losses moved to break even and the latter stop losses trailed to Monday's low. Our Gold trade is also currently up +1% with stop loss moved to Monday's low.
If the risk on sentiment continues we may see some gaps on stocks during the US session.
Coca Cola Long (KO) - Strong horizontal support from yearly highs and lows. RSI and MACD divergence, Ring Low setup. This is tradeable as a pure price action setup but could also be traded on the open if the market gaps higher.
Home Depot Long (HD) - Double bottom with Stocahstic and RSI divergence. This may provide further support for the market to gap open higher.
Exxon Mobil Long (XOM) - Support is found at four touch trend line from 2011. The engulfing bar/candle and Stochastic, RSI divergence supports a bullish case. This is tradeable as pure price action but you could also wait for the intra-day gap.
No comments:
Post a Comment