At the close of last week, we noted that the action we saw throughout the Friday afternoon session was indicative of some volatility this coming weekend. Things has been a bit up and down all week, and we managed to get in and out on a number of occasions for some quick and easy profits, but we were really looking for some sustained breakout momentum to give us a longer term opportunity.
Well, that’s pretty, much what we saw. Price broke out to the upside as the weekend got going, and we managed to get in long towards a pretty substantial upside target. Having reached highs just short of 680, price then corrected a little bit, and we are now mid range just off these corrected highs. Monday early Europe is generally a little bit quiet, but when the US session kicks in, we should get some volume, and some momentum.
So, with this said, and as we head into the open, what are the levels we are focusing on, and where will we look to get in and out of the markets if we see some movement? The chart below has our focus levels highlighted, and shows the action we saw across the last twenty-four hours or so.
Take a quick look at it before we get going.
As the chart shows, we are going after a pretty tight range today, defined by in term support to the downside at 672 and resistance to the upside at 680.
If price breaks through these levels, we will look for a close post-break to signal entry in the direction of the break. So, a close below support signals short and we’ll enter with a target of 665. A close above resistance will put us long towards 687. A stop just the other side of the entry in both cases defines risk on the positions.
Charts courtesy of SimpleFX