Ranges in cryptocurrencies are over

Ranges in cryptocurrencies that lasted from the end of 2018 till the March of 2020 are over for good and the crypto market is trending again. Whatever, crypto pair you will take, it is trending, and performing much better than US dollar, or even the famous US security market of SP500. It is really the time to buy and hold cryptocurrencies, at least till the end of the year. 

However, markets often consolidate and get into ranges, at least for a while. exmarkets.com published a great article on how to trade ranges. Be sure to read it, as cryptocurrencies range for about 80% of the time. If you want to learn more about trend trading, be sure to check what Investopedia has to say about it. Some of the best performers in the most current trend in crypto was in btc/usd, eth/usd, and ltc/usd. 

It is hard to predict which cryptocurrencies will perform best, so one of better choices for you would be to buy and hold a number of pairs, to increase diversification. Of course, do not forget to have a specific day trading plan, and risk control, as well as sound profit targets. I would really discourage you from scalping the crypto market as those who scalp will often lose their scalps. Day trading, trend trading, range trading or simply price action trading will work much better. 

Also do not forget to select the best trading platform before you open any trades. No investing strategy will help you if you do not do your own due diligence. You can be the best investor, or day trader, but you choose a scam broker in crypto market you might lose all of your capital. 

Successful day trading strategies might also include buying at the low of the day and selling at the high of the day, or vice versa. There are some crypto trading apps around that say to produce great trading results, but I am not so sure about them. Always remember, that you need to have your own day trading rules, whether you trend trade, or range trade. Take care. Good luck in your trading career.

Buy opportunities in Gold

If we look at longer term charts in gold you may spot that after a prolonged downtrend, Gold has been bullish since the end of 2015. It was going up in waves. Pressure up has been building steadily and any technical analyst will say that buying on dips is a perfect strategy for this commodity. 

Taking into account that the world is facing dangers of nuclear war, in my opinion gold has only one direction to go now, which is up. 

You may also see that having run to 1365 level it corrected to 1307 level, then bounced and then fell back slightly below 1307 and bounced again forming a bullish pin on a daily chart. I assume we will see another leg up in gold and sooner rather than later we may see a long term break of 1375 level and a strong move after that. 

So, to sum up, I expect a strong upward trend to resume in Gold and opportunities to buy it are excellent now. 

Disclaimer

Financial markets carry a high level of risk. Investor can lose all his money trading them. You should not invest money that you can’t afford to lose. Information on this blog is for information purposes and should not be regarded as an advice to invest.

 

Oil Rally Stalls at Resistance

In my previous post on oil I wrote about bearish triangle that could be seen on 1, 2 and 4 hour charts. On the one hand it failed to materialize when price rallied through upper trend line of 45.50-46.00 (I took a small loss on that one). On the other hand, that does not negate the fact that the commodity is still in a downtrend and may resume its long term direction any time. You may look at 8 hour chart below and you will see that for the third time price rallied to 200 ema on 8 hour chart and each time a bearish pin candle pattern formed causing price to stall and then to fall. 

The same thing happened today. You can see an indecision candle first, and then two bearish candles, the second one being the signal for a short trade and if you had taken it (I surely did) you would have made nice cash by now. I entered my short at 46.49 with a stop loss above the high of the current move (47.72) and I took my profit at 45.20. Risk reward ratio on that was 1:1, but as the pattern was really strongly bearish and easily took the trade without thinking much about it. 

Support remains as it was at 43.50-43.00 area. I do expect it to be broken soon and price to reach another new low for the year. In my opinion oil is headed towards 30 and then possibly to 20. I play it only from the short side for the time being. 

Oil Hit Upper Trend Line

I mentioned in my earlier post that a possible bearish triangle was in formation in oil. Looks like my predictions are confirmed as today price hit upper trend line of the triangle and is reversing to the downside at the time of writing. As you may see from the chart below we have pressure building up for the commodity to go down. Any time it rallies up, it faces resistance earlier than previous time. So, the first point was 49.30, followed by 48.40, then 46.40, later 46.00 and now 45.60. Let me remind you that breakout traders would sell a break of key support that currently is 43.50-43.00 area. 

If breakout materializes we may see the security to go down as low as 37.50 (the low of August 24). I do have a small short position from 43.16 with a stop loss above today’s high. Let’s remember that the longer term trend is still down and a resumption of the direction may start any time now. FOMC rate decision tomorrow can surely be a good trigger for the continuation of the downtrend. Anyway, any bearish candle on the hourly chart at resistance could be a good point for entering a short position. Let’s wait and see what happens to the commodity. 

After a Few Weeks of Rise eurusd Reverses

After a few weeks of rise, eur/usd finally reversed. The turnaround started on Monday (yesterday), when having reached 1.1370 resistance the pair formed bearish rail road tracks pattern and started collapsing. Today’s price action only confirmed bearish bias in Euro. You can open both 15 and 1 hour chart to see that. Price tried to rally to intra day resistance of 1.1330 two times today, but failed. Each time it formed a bearish candle pattern after which price fell. As yesterday’s (low) support of 1.1280 was broken during US session we may assume that the move downwards will only accelerate this week. Be ready to sell at failed rallies to intra day resistance levels. 

Tomorrow’s possible intra day resistance will be at 1.1280. You remember the old saying that previous support becomes resistance and vice versa. I think this could be true in this case too. 

The next level of support is seen in the area of 1.1240-1.1220. Hourly chart clearly shows that Euro bulls had to work hard to break the level from the 8^th to 10^th of September. 

Important fundamental data that may impact the exchange rate of the pair is on Thursday when Federal Open Market Committee Rate Decision is announced at 18:00 GMT. Watch price action after the event and be ready to go in the direction market goes. 

Rail Road Tracks in gbp/usd

Monday price action in gbp/usd has been as it usually is. If you monitor how currencies move at specific days of the week, how they open and close, you will surely notice some tendencies. This week was no exception. We saw directional moves during the past week as the cable rose against US dollar for the whole week. The tendency continued on Sunday open. You need to know that in most cases if there was a directional move previous week and market ended moving in that direction you are going to see a reversal on Monday. 

As always there was a false move up during early European session (during Frankfurt open) and the move upwards continued till the start of London session. Market then formed rail road tracks candle pattern and reversed sharply to the downside. I expect some ranging today and possibly tomorrow and then a direction to form. 

There are some important fundamental releases this week, the key one being FED Open Market Committee Rate Decision at 18:00 GMT on Thursday. I doubt if we are going to see anything significant happening before that date, but you should watch UK Consumer Price Index release at 08:30 GMT tomorrow and UK Unemployment change at the same time as CPI on Wednesday. 

Gold is Going Down in Waves

Gold went up in three waves during the month of August after a dramatic collapse in previous months. In the same fashion it has been going down since 21^st of August when the top was made at 1170 level. The first wave formed from the 21^st to 24^th of August where it found short term support at 1145. It formed a bullish pin there. 

However, price made another wave down in the next couple of days from 25^th to 26^th of August. It then went up to test previous support that became resistance. 1145 was well defended by gold bears and price after ranging till the 9^th of September proceeded to fall (third bearish wave). 

It looks like price has found its short term support at 1100 level. Bullish pin at support on Friday indicates that price may go to its previous support of 1115-1116 level (now resistance). 

Looking at a broader technical picture, it does not seem that the move down is over. We might expect one more wave down that would take the price of the commodity to 1080-1070 area. This is the area where gold bottomed in the months of July and August. The fall should stop at that area.