So that’s the week done, and it’s been a busy one. Things have played into our strategy from all angles, most notably (and I promise we’ll stop mentioning it from next week on out) the election in the US. It didn’t really play out as we expected, but that hasn’t impacted sentiment, at least not from a negative standpoint, and we’ve had lots of lovely volatility to dampen the disappointment of any decrease in volume.
We’ve got the remainder of the US session left before wider financial markets take a break for the weekend, and we’re hoping for a strong finish to the week.
With this in mind, let’s not fluff this out with any rambling, and let’s get straight to the details. Take a look at the five-minute candlestick chart below to get an idea of what went on today, and where we are looking this evening.
As the chart shows, the levels in focus for this evening’s session are in term support to the downside at 715 and in term resistance to the upside at 723. That’s a pretty wide range when compared to some of the ranges we have been going at, and so we’re going to bring our intrarange strategy into play one last time this week.
Specifically, if price bounces from support, we are going to get in long towards an immediate upside target of resistance. A stop loss on the trade somewhere just below support (around 713) works to limit our downside risk on the position.
Conversely, a correction from resistance will put a short towards support. Same principle, with a stop just above resistance this time killing off our upside risk.
Looking at our breakout entries, if price runs through resistance we will get in long towards 730, and if we see a close below support it will signal short towards 708.
Let’s see how things play out.
Have a good weekend!
Charts courtesy of SimpleFX