Market analysis and insights on Forex & Commodities!

 

This is a 5-min chart of the EUR/USD using the CMC Markets platform, and offers a glimpse of how I trade with 5-min charts. Price action is useful and universally applicable because it can work on most counters and most timeframes, even if the products do not have volume. 

This was quite a decent trading day, with 1 scratch trade and 3 winning trades. I started trading at 3pm, which is the time when European markets turn active, but had to end the day early (closed out everything by 6pm) because of dinner plans. 

Today was pretty much of a ranging day, which was why I employed a trend channel strategy, using price action to pinpoint the precise entry and exit points. The day started off with a bull flag which failed, forming the start of the channel and providing the setup for the next entry. After that, it was pretty much trading within the range.

One thing to note is that although the bull flag failed, its projected target was hit almost to the precise tick later in the day, showing that classical chart patterns can be traded in different ways, as part of a more advanced price action setup.

Program Graduates: Please refer to the Synapse Forum for real-time postings and more in-depth discussion of the setups.

 

As expected, there was a strong selldown within the channel. Prices may rebound or consolidate, now that they are near the channel bottom.

In my previous post, I mentioned that Genting was going to continue its decline, and currently it is below 1.50. The STI Index has closed on a new low, below the previous low of 2720. What does this mean? It means that there is a good chance of seeing new lows, either with or without a consolidation phase first. One tell-tale sign is the weakness in major sectors like the financials and O&M. Let’s take a look at DBS, one of the 3 financial giants.

After a classic evening star reversal early this month, DBS has gone down to make a new 20-month low, providing several good shorting opportunities (can you spot them?) along the way. The worse part is, there seems to be no immediate support level. This means that the markdown has potentially a lot of room to go, since there will be no psychological level for the bulls to rally. I would be keeping an eye out for more opportunities to go short.

Photo with Lee Lung Nien, COO of Citibank Singapore

This year, it was once again a gruelling tough battle at the Citbank Forex Challenge. There were over 300+ teams, and only 48 made it to the finals. I am proud to announce that 4 of the 8 teams from my round that made it to the finals were from the SMU Investment Club, including the top 3. Nicholas and I topped the qualifiers again this year, unfortunately we did not fare well in the finals. However, it was some consolation that the 1st place was taken by a team comprising of my juniors from the investment club. As the research director and trainer, I am glad that the juniors I have trained under the Advanced TA training sessions have managed to perform so well this year.