[Week 4 - 2020] Trades Recap and Trade Setups

Good day TTs,

What a hectic week especially over the weekends. What is supposed to be a festive season for the Chinese ended up with an epidemic of the coronavirus in Wuhan, China. Risk assets futures gap down when the Asian market open. Now let’s head to the review of the trade that was made last week.

Soybean futures

Last week I have entered short position as the priced broke below the neck line. I have added small positions when the price pulled back to the 50MA @ 30mins. Price seem to have potential to reach down to Dec’2019 lows.

Reasons Power of one (50MA @ 30mins) Broken neckline (reversal)

S&P 500 / Futures

Due to the risk aversion, S&P has broken the neckline last Friday. I have closed some of my most recent position and went short as cover for my portfolio.

If the 200 moving average manage to hold and have a price reversal, I will close my short position.

Reason: Broken neckline @ 4hr Double top @ 4 hr RSI Divergence

EURUSD

Price has broken the neckline and has shown a Head and Shoulders pattern. I went short when price broke the neck line. In the second screen shot you can also see the price rejecting the 200MA very strongly

Reason: Head and shoulders pattern Neckline broken Trend line reversal Power of one (50 MA @ 4hr)

Trade Setup

WTIUSD

Light crude oil has reached one of the major support level since November’2018. I will be looking for long opportunity to go long when price show signs of reversal.

Reversal signs to look out for (examples): Staying above 50 MA line @ 30mins / 1hr Higher high and higher low Broken neckline

Stay safe out there and happy trading!