British Pound Opens Below Support
This morning the British Pound opened below the support area forcing me to exit my long position. The Pound was off to a great start last week but quickly reversed its gains by moving back into the congestion area. I still feel the long term trend for this market is up and will continue to take buy signals and use sell signals to exit my long positions. I'll patiently wait for the next buy signal to take place.
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9 comments:
Hi Kevin, a new post on the Shangai stock market wil be welcomed as it seems there are some signs of weekness there.
thanks in advance!
There was a strong fundamental reason for the reversal here with the BOE's 50 Billion pound money printing announcement.
Will be interesting to see how it treats that level again.
Andrew
this market seems full of false break-outs and failed patterns.
Maybe too many people ar following T/A and the Goldman computors ar eating their lunch?
Yes, summertime trading is usually choppy and trendless. I should have known better.
Hey Kevin,
Perhaps too early for me to claim victory on this one but the odds just flipped into my favor regarding this being a head fake on the pound with the breakdown below the support line.
In this comment on your blog I suggested UUP would bottom at 23.20 but I was off by 14 cents. It bottomed at 23.04:
http://kevinsmarketblog.blogspot.com/2009/07/british-pound-breaks-through-resistance.html
The reason for my certainty is the Elliot wave count is complete and the DSI on the dollar indicate there are no more sellers. Taken together it most likely means that the dollar will now rally for 1-2 years as deflation settles into our economy. I know it sounds whacky but the contrarian view is the correct view at this time IMVHO.
As always, GL and thanks for this nice blog.
DaveT
Kevin,
What do you think of the Shanghai index? It dropped quite a ton in the past week.
What do you think of aluminum as well?
Thanks a lot!
great site, I will visit again
Kevin,
Where is the stop for Shanghai index? Thx!
I don't have a stop because I am not long the Shanghai index. If I was long, I would have been out of this makret when the support line was broken a few days ago. See my latest post and look at the red line I drew.
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