Tyler - Training Traders
Jun 11, 20232 min
Hey Traders,
Equities closed the week higher again this week with technology stocks leading the charge. Divergence between small cap and large cap has also reduced as the Russell 2000 closed the week with 1.9% gain.
There is an increased certainty that the FEDs will pause rate hike on the upcoming FOMC which led to the market pricing onto risk on asset. I would expect equities to not move much if the FED do indeed pause rate, but if the event prove otherwise, equities may experience a huge dip.
Upcoming Economic Release:
S&P500 Futures
The S&P500 index broke past the key resistance level which also coincide with the 64% Fibonacci Retracement area. Price looks to push towards 4550 resistance region. Price has also closed the week higher four times in a row where there is a increased possibility where a retracement will happen in due time.
Dollar Index (DXY)
The United Dollar Index continues to trade in consolidation just below resistance level. Price was overextended and look to trade back towards the 50 daily EMA (exponential moving average). If price breaks out of the 101.325 minor support region, price can potentially look to dip towards the 102.75 region. However if price were to break out of the 104.085 resistance region, we can see the Dollar push towards the 105.0 region.
Spot Gold
As mentioned in our last week post, if price were to continue the downside momentum towards the 1938 region, price can look to reverse to at least the 1955 region. Red candles only continue to form, and price indeed push towards the target level. Gold continues to trade in consolidation, similarly to the United States Dollar (USD). If the 1938 support is breached, we can see price push towards the 1912 region while if price were to breakout above the top of the range at 1980 region, we can see price push towards the 2000 region.
Trade Recap
Sugar #11 - July Futures (Exclusive Trade)
Recap (Week 23 - Last Week) Take Profit - 2
High risk short at market position reached Take Profit - 2 level where we announced to close / partial.
NZD/CAD (Exclusive Trade)
Second Position
Recap (Week 23 - Last Week) Stopped
High risk long at market positions got stopped out.
Trade Analysis / Setups
USD/CAD (Analysis 24-1)
Analysis: Price lies at support region and has begun to trade sideway. Potential long entries can be taken if price were to break out and have a retest confirmation at 1.33711 minor resistance region.
Long opportunity: Break and retest confirmation at 1.33711 region towards 1.34535 as Take Profit - 1 level.
It is unfortunate that we met with a significant loss this week with NZD/CAD. Trade safe!
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Stay safe out there and safe trading!