Charts of Interest - Nasdaq 100, USDSGD and GBPAUD
The end of the trading week is fast approaching however there's still a bit of time left to continue looking for that next trade to come about. We thought we would take you through 3 charts which are certainly worth keeping an eye on through to the end of this week and even early next week. There's no precise trade setups on these charts quite yet but there's ceratinly potential trading opportunities developing.
In the session just closed the Nasdaq 100 has hit a multiyear high which is why it's a chart worth talking about. We have illustrated this in the weekly chart below. For the last 9 weeks the Nasdaq has been stuck in a range and consolidating back into the buy zone. However the break today could signal that we are ready to resume the uptrend especially if the weekly candle can close out above the 4343 level. How can we trade this? well for now we will be keeping an eye on the lower timeframes for our strategies to setup when Friday's cash session opens. The Daily chart is looking rather overextended so we will just be looking for intraday moves to finish out the week. Looking further ahead it's worth scanning all the Nasdaq stocks for any trading opportunities to get positioned for the longer term on a swing trade basis as we do look set for a nice move higher in the medium term.
Moving over to the Forex market it's worth pointing out where USDSGD is currently sitting. Ever since Nonfarm Payrolls came out last Friday we have seen continued strength in USDSGD and now price has undergone a small pullback to the previous highs. As you can see in the 480 minute chart below we have moved up strongly and pulled back to these highs which we would now expect to act as support. We are watching to see if the current candle can close out bullish and if that occurs we may look to take a long trade on this pair if that candle's high is subsequently broken. If USDSGD doesn't find support at the level outlined and continues to sell off we won't be interested in this trading opportunity any longer.
Lastly taking a look at GBPAUD which we looked at earlier in the week. If we take a look at the daily chart below we can see that we did get the strong break out we were looking for. We were looking for the pullback to retest the breakout level but we didn't quite pullback far enough to get what we wanted. However there's still potential for price to pullback to this level so it's something we will continue to stalk. A pullback to that level on the daily chart would still equate to a 61.8% Fibonacci retracement so it's actually shaping up quite nicely. Although our first plan of wanting that pullback to occur on the 240 minute chart didn't play out, we have to learn to adapt our plan as the market evolves which is what we have done here. If we do see a pullback to this level we will be looking for price to give us signs that buyers are ready to once again take control of the market and push it higher.
Also just a reminder that we are running a new and exciting webinar next week that covers the first 2 hours of our two day trading course. If you are interested in joining please sign up here.
Happy Trading!
Regards,
The TWP Team
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