Chart of interest - perfect night for 'risk on' view

Posted by Graham Parlane on 29 November 2012

All

This morning there are numerous charts suggesting we could be on the verge of some very healthy moves higher i.e. risk on.

At the very least the overnight moves gives some very clear parameters to trade against, particularly if you hold a (extremely) bullish view as I do. I always have to check myself when my sentiment is so strong, however I will not be ‘falling in love’ with any positions. My stop loss levels will be clearly defined and my risk taking appropriate for the size of my account. It’s not a crime to be wrong but it is to stay wrong!

Ok here we go.

1)     Dow Jones Index - Opened 1% down, ended up 0.85%. Essentially a bullish engulfing day with huge rejection tail.

DJI.I – Click here to view chart

2)     EUR/USD – Butting up against 18 month trend line resistance. Down again or explode up through it…..what’s your call?

EURUSD – Click here to view chart

3)     EUR/USD – A closer look. Its abundantly clear that a MASSIVE battle is taking place between bulls and bears right now given the price action of the last two days. I like to view it in somewhat barbaric terms. A battle is on and to the victor….the spoils! For whichever camp prevails in this battle the rewards will be quite long lasting I think.

EURUSD a closer look – Click here to view chart

4)     NZD/JPY – As suggested in yesterday’s piece ‘Part 2 – NZD/JPY – a pause?’ when moves are strong the 10/20 day ‘river’ is a great indicator and overnight it did a nice job (as did my short term model) so I suspect that NZD/JPY should now not go under 67.00

NZDJPY – Click here to view chart

There are a myriad of charts that all look the same but obviously there’s no point reproducing them all here. So I’m very bullish and have clear parameters to trade against. It’s an exciting prospect for a trader.

G.

Tags: Broker, DJI, Dow Jones Index, EUR, EURUSD, Foreign Exchange, FX, FX trading, JPY, NZD, NZDJPY, Trader, USD