So we are about to close out the session in Europe, and action has been pretty much flat throughout the day. In this morning’s analysis, we said we would attempt to focus on both the intrarange side of our strategy and the breakout element, but we haven’t really had any opportunity to do either. Price came close to activating a short intrarange trade, but didn’t actually reach resistance to initiate the position, so we have remained net flat in the market all day.
With any luck, action will liven up a little this evening, and we can get in and out on a position according to either of our strategy approaches. If it doesn’t, we will once again remain flat on the markets.
As we’ve said before, staying out of the markets is half the battle. If we avoid entering when our rules don’t meet the necessary criteria, we can avoid taking on avoidable losses, which can be just as valuable as entering a winning position.
So, with the preaching out of the way, what are we focusing on this evening, and where will we look to get in and out of the markets if and when our strategy affords us the opportunity? As ever, take a quick look at the candlestick chart below to get an idea of the range in question.
Tonight’s range is defined by in term support at 447 flat, and in term resistance to the upside at 453 – similar to this morning’s approach.
We will be looking to enter long on a break and close above in term support, and we will target 460 flat on the entry. Stop at 451.
If price closes below in term support, it will signal short towards an initial downside target of 442. Again we need a stop, and 449 flat looks good enough.
Happy Trading!
Charts courtesy of SimpleFX
Image via NewsBTC
