Nov 19 2020 0
The market is heading where we want. Don't miss this opportunity. However, be careful of that FOMO attitude.
- Expectations for rate cuts in some of the world's biggest economies are fading with the prospect that a successful vaccine will spur growth again.
- European stock markets fell on Wednesday amid fears that the recent surge in coronavirus infections across the region would hamper an economic recovery that has just begun, even as the Covid vaccine -19 have breakthroughs.
- The probability of an increase in the SP500 for the remainder of November is very high, at 80%, suggesting a possibility of buying, the average return over the past decade is +1.89%.
- Japan is optimistic despite the rise of new Covid-19 infections.
- Brexit: The EU countries are supposed to receive updates on Brexit negotiations at 07:00 GMT on Friday.
The price has had the 5th consecutive decline session and also successfully broke the important price zone 104. You may consider adding a new short position. If you have entered the order in time, continue to keep. The target this time is the support zone 103. However, it should be noted that the level 104 is very interested in the market and the Japanese government, so it is possible that JPY will not stay below this rate for long. Stop Loss orders should be placed just above this zone to prevent sudden and strong corrections.
Our persistence in finding selling opportunities paid off. After the bearish pin bar pattern in the previous session, we had again a new bearish pin bar pattern and a bearish engulfing pattern. Who has a short order, continue to hold. If not, consider entering the initial target around the price of 1.175. The double peak pattern is also showing up, and these are all good signs for the bears. Don't be too optimistic, though, and it's worth noting that the current strategy would have been dropped if the 1.190 stop was broken.
The price has approached the confluence zone 1.33 and is generating noticeable bearish signals. The double vertex pattern is also forming. Those who trade against the trend may consider short-term orders. Place the Stop Loss just above this price zone. Trend traders should patiently wait for a buying opportunity around the bottom of the uptrend channel.
Prices haven't changed much from the previous session so we keep the old strategy. Focus on observing area 1.317. If the price breaks this zone, it will confirm a new bullish structure, and invalidate the bearish pin bar candlestick pattern. Only then should we consider buy orders.
Price is not decisive in forming a new high around 0.735, so this is not a good sign. We will continue to watch and consider short positions only when the price pattern is complete.