Here’s to the freakin’ weekend! Wait, right now everyday eerily resembles the weekend. Ah, well, it is a good time to be productive: Learn a new skill, get fitter…get after it!
Oil: Still in a solid downtrend. A level of support is forming around the $20 mark. No trigger here.
Bitcoin: Still in a downtrend. The EMA red(8) is above the blue (21), the brown (55) are all in order for a down trend. The price itself has crossed back above the blue. If it were to cross back below the red, we would have a short trade.
EUR/USD: Closed below the red while the blue was below the green (green and brown are both 55 EMA) indicating a downtrend. Currency pairs are the relative strength, one versus the other. In this case, because the EUR is the base, down means that the USD is currently strengthening against the EURO. Not that we care that much which one is doing what, we only care if we have a chance to place a trade or not.
The black line on the chart above is a level of resistance. Our trade is set to go. We will place our stop-buy just above the resistance. Our protective stop will be placed at the colourful yellow line skillfully hand drawn. Buy at $29.33 Stop $27.18
As a reminder EUO is a stock market chart representing the EUR/USD pair on the stock market.
Apple: Apple is in a downtrend based on our simple definition. The blue (21) is below the green (55) and the red is below the red (8). The price pushed up and touched the blue. I would prefer a cross of the blue with a close or a cross above the blue by the red. The price has crossed back below the red. So we will place a short trade. The yellow circle is around what is known as a rising window. We consider the bottom ledge of the window to be support. We always place our shorts on the window ledge (not me, the neighbours got a petition together). Just below the ledge, actually. Our protective stop will go just above the recent resistance. This is the point where we could be wrong, and therefore want out of this trade.
If we are triggered in, , I will post the capital allocation details of our trade.
Come back Sunday night for the weekly round up. All the charts will be posted with clever comments.
IN THE MEANTIME, PLEASE DO NOT CONSTRUE ANYTHING YOU READ HERE AS INVESTMENT ADVICE. WE ARE TRADING A THEORETICAL PORTFOLIO FOR TEACHING PURPOSES ONLY.