Friday, May 19, 2006 11:52 GMT Daily Report By J. Enrique Tolentino S. http://www.gcmreach.com
New York Session - My FX Trade Tactical & Technical Strategy for Friday May 19th, 2006:
Tactical Strategy: Retracement Acomplished.
Today's (Daily Trade) targets achieved and profits already taken or protected. Pressure remain, but momentum appear extreme. The consolidation stalling (weakning bias, mature oscillators & rejected Pivot) signals a pullback & suggest the start of a new short term cycle. At this stage after mild sideway consolidation, The realignment of prices, slowing momentum and stalling bias, points that the risk of continuation is limited & current structural situation is ideal for attempt a correction entry. If entries are triggered, proceed as a nominal trade.
Technical Commentary:
The Cable broke downward nicely, but was rejected strongly from 1.8705 support level, triggering our preventive “moved” stop @ 1.8755, activating profit taking. Now it should consoliodate aroud this levels w/ slightly downward bias. 1.8670 next support if 1.8705 broken.
The Swiss move upward steeply but was rejected from 1.2225 resistance level & retrace strong anough to trigger our preventive “moved” stop @ 1.2190, activating profit taking. Now it should consolidate around this levels with slightly upward bias, & if 1.2225 is broken will reach next resistance around 1.2275/90.
Plan: strategy is working well; Await Sunday dispatch to determine MT strategy. Stay out unless contrary trade advice signal. Now, as the trend develops, move your stops to secure profits. The ideal proportion is about 5 pips for every 65 movement. Take profits before NY session ends. (you may leave open positions at your own discretion).
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