Time for consumer discretionary to outperform? Longs look good with entry/target/stop levels shown on chart.
Discretionary
Probable Short on EURUSDA few concepts about my Price Action Strategies will be revealed as I keep posting the charts. Initially, I used to trade Discretionary Price Action which lead to many disciplinary problems.
Hence, I gradually moved my Price Action Trading onto a more Rule Based Price Action Strategies (Rule Based Market Structure with Discretionary Entries and Exits).
Coming to the current chart, I am considering the last for Swing Points (Swing Low - A candle with at least two higher highs on both sides, Swing High - A candle with at least two lower lows on both sides) on the hourly chart. The Swing Points, ABCD, have given me a Trend Cycle to the Downside, hence giving me a probable Downward Future Bias. C being the Trend Violation Swing, I am expecting the hourly chart to Pullback to B or C depending on the Price Action around the region.
Further, any weakness in the area, and a Failure (Rule Based Failure Setup, will be posted in future charts) leading to a reversal is a Good Short with a Good Risk - Reward Ratio with Targets being D or may be even lower.
XLY: A technical overview of top 3 weighted holdingsSummary: Comcast and Home Depot dragging down price. Amazon is keeping it from falling further
2-Yr Head & ShouldersCan their 6.5% profit margin and $1.2 billion debt withstand a consumer downturn?
MACRO VIEW: XLY IN FIRM MACRO UPTRENDConsumer Discretionary SPDR ETF is looking good on both short term and long term basis.
On long term basis - XLY trades in both 5 and 10 year uptrend, as the price stands firmly above 1st upper standard deviations from both 5 and 10 year means It has tested its 5-year trend during the august selloff and held it successfully.
On short term basis - XLY shows no trends in particular, as the price is firmly within the 1st standard deviations from 1-year and quarterly means. It is a positive development, since nothing on short term basis stands in the way of long term trends.
