Tom Hall Market Review #1 - Thursday, 07 March 2019
Tom Hall Market Review #1 - Thursday, 07 March 2019
Canadian Dollar / Japanese Yen
Approaching this week the CAD.JPY presented textbook multi-timeframe technicals and healthy reward comparative to risk, placing this #1 on my currency trade watchlist.
The daily ascending wedge, 4-hour ascending trendline and 50EMA breach were confirmed on Monday, 04 March 2019, this allowed me to place alerts awaiting a consolidation period.
Price continued to accelerate into Tuesday and Wednesday, breaching the intraday 83.60 horizontal support without presenting a pullback.
Today, the intraday timeframes are indecisive as the 4-hour RSI enters oversold, this indicates a consolidation period is highly probable.
The CAD.JPY continues to remain on my active trade watchlist while the risk/reward exceeds 1:2
Australian Dollar / Swiss Franc
The AUD pairs dominated my trade watchlist entering Monday's London session. However, the market gap on Sunday meant additional development across the 4-hour timeframes were required.
The AUD.CHF daily head and shoulders formation has been developing since the start of January 2019.
A highly anticipated breach of the neckline at 0.7100 was confirmed on Friday, 01 March 2019, placing this pair on my main trade watchlist entering this week.
On Tuesday, the 4-hour timeframe developed bullish RSI divergence, which was a cause for concern after a large bullish candle entered my trading zone.
Due to the lack of deceleration and reversal candles, it invalidated a short opportunity.
There are occasions when a textbook trade opportunity fails to present an entry, its key to suppress the emotional and impulsive demons due to the FOMO.
Australian Dollar / Japanese Yen
The months of indecisive weekly price action approaching the 79.00 horizontal structure resistance, helped form a daily ascending wedge formation.
A breach of 78.90 was required to confirm the first stage of a short opportunity.
On Tuesday, 05 March 2019 price closed below the daily wedge formation, 4-hour ascending trendline, 50EMA, and 200EMA confirming stage two of a short opportunity.
I'm now merely awaiting a consolidation period to form, this will provide additional confluence and healthier potential reward.
S&P 500
The rejection of $2815 horizontal structure resistance presented an ascending channel breakout on the daily timeframe confirming my higher timeframe thesis. However, I still require additional development throughout this week to establish a potential short opportunity next week.
An intraday consolidation period before market close would inevitably form a low-test candle on the weekly timeframe as opposed to a bearish engulfing.
A patient approach while the price develops is crucial to minimize any unnecessary drawdown.
USOIL
The $60.00 structure resistance continues to hold as the key trading level. Until any such time where price rejects or breaches this structure, I'll be sitting on the sidelines.
The 4-hour chart indicates price is trapped between the $55.00 horizontal support and $57.50 resistance.
Canadian Dollar / Japanese Yen
Approaching this week the CAD.JPY presented textbook multi-timeframe technicals and healthy reward comparative to risk, placing this #1 on my currency trade watchlist.
The daily ascending wedge, 4-hour ascending trendline and 50EMA breach were confirmed on Monday, 04 March 2019, this allowed me to place alerts awaiting a consolidation period.
Price continued to accelerate into Tuesday and Wednesday, breaching the intraday 83.60 horizontal support without presenting a pullback.
Today, the intraday timeframes are indecisive as the 4-hour RSI enters oversold, this indicates a consolidation period is highly probable.
The CAD.JPY continues to remain on my active trade watchlist while the risk/reward exceeds 1:2
Australian Dollar / Swiss Franc
The AUD pairs dominated my trade watchlist entering Monday's London session. However, the market gap on Sunday meant additional development across the 4-hour timeframes were required.
The AUD.CHF daily head and shoulders formation has been developing since the start of January 2019.
A highly anticipated breach of the neckline at 0.7100 was confirmed on Friday, 01 March 2019, placing this pair on my main trade watchlist entering this week.
On Tuesday, the 4-hour timeframe developed bullish RSI divergence, which was a cause for concern after a large bullish candle entered my trading zone.
Due to the lack of deceleration and reversal candles, it invalidated a short opportunity.
There are occasions when a textbook trade opportunity fails to present an entry, its key to suppress the emotional and impulsive demons due to the FOMO.
Australian Dollar / Japanese Yen
The months of indecisive weekly price action approaching the 79.00 horizontal structure resistance, helped form a daily ascending wedge formation.
A breach of 78.90 was required to confirm the first stage of a short opportunity.
On Tuesday, 05 March 2019 price closed below the daily wedge formation, 4-hour ascending trendline, 50EMA, and 200EMA confirming stage two of a short opportunity.
I'm now merely awaiting a consolidation period to form, this will provide additional confluence and healthier potential reward.
S&P 500
The rejection of $2815 horizontal structure resistance presented an ascending channel breakout on the daily timeframe confirming my higher timeframe thesis. However, I still require additional development throughout this week to establish a potential short opportunity next week.
An intraday consolidation period before market close would inevitably form a low-test candle on the weekly timeframe as opposed to a bearish engulfing.
A patient approach while the price develops is crucial to minimize any unnecessary drawdown.
USOIL
The $60.00 structure resistance continues to hold as the key trading level. Until any such time where price rejects or breaches this structure, I'll be sitting on the sidelines.
The 4-hour chart indicates price is trapped between the $55.00 horizontal support and $57.50 resistance.
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