GBPJPY Breakout Soon

Hi guys,

Another quick post. This time it's the GBPJPY currency pair.

GBPJPY has been in a triangle consolidation pattern since January and it looks like the pattern is coming to an end. This is what the daily chart looks like:

As the triangle consolidation pattern is now coming to an end, we should be anticipating a breakout and continuation of trend. It is my belief that the breakout will most likely be to the upside because the longer term trend is bullish. Also, the most recent candle on the daily chart has been a fairly strong bull candle.

I'll be keeping an eye on the UK GDP tomorrow as this could be a catalyst for the breakout tomorrow. If the breakout occurs to the upside then I will look to get long on a Fibonacci retracement.

But for now, we must be patient and the most important thing is to anticipate that there will be a trend soon and that we must be ready to take advantage of it.

Good luck!

The Trainee Speculator

Quick update on the DAX

 Hello fellow traders!

In my previous post, I said that I was looking to go long the DAX depending on what kind of price action occurs on Monday and Tuesday. See the chart below of Monday's trading session:

So like I said before, I was expecting price to play off the 50/61.8 Fibonacci levels. In the picture above, you can see clearly that we have a small body bull candle with a long wick at the bottom. This is the result of today's trading session. This is the kind of price action that I was looking for. Essentially, what it is telling us is that price opened higher than yesterday's close but then got sold down to the 50% Fib level. However, a lot of buying power then came in at that level and pushed price back to above the open.

This kind of price action is signalling to me that market participants are accumulating positions getting ready to go long. I won't put a trade in just yet because I feel that tomorrow's trading session will be more of the same. This is because there isn't really any key significant data affecting this instrument until Wednesday-Friday.

However so far so good. It looks like the Head and Shoulders pattern is holding and our potentially lucrative long trade is still on the cards.

Good luck and happy trading!

The Trainee Speculator

Possible DAX opportunity on the horizon

Hi guys,

I believe that there could be a possible large up move coming in the DAX. I know that it's pretty crazy to still be long when equities are back at their all time highs again.

However, having said that, the 200 SMA is still holding strong with the DAX refusing to drop below it. Additionally, it looks like an inverse head and shoulders pattern has formed on the daily chart implying that there may be more upside to come. Check the picture posted below:

I'm not going to be getting long just yet. The DAX will probably hover around the 50/61.8 Fibonacci line for a couple of days. Depending on the way it behaves over these next couple of days, I may get long from there. The European CPI data on Wednesday may act as a catalyst for the potential up move because it is predicted to be higher than previous.

That's all for now. Good luck and happy trading!

The Trainee Speculator