Monday, May 22, 2006 12:34 GMT Daily Report By J. Enrique Tolentino S. http://www.gcmreach.com
New York Session - My FX Trade Tactical & Technical Strategy for Monday May 22nd, 2006:
Tactical Strategy: Consolidation Continues.
At this stage after mild sideway consolidation prices almost met our entry levels. Anyway the Dollar still strong & the decline still looking healthy and as long as supports turned resistances holds even displaying oversold condition, the risk of rebounding is limited. We still expect another leg of consolidation or/then a further rally toward our placed entries, before any valid attempt of reversal. Keep your entries in our designated spots & mantain tight stops.
Technical Commentary:
The Cable probably found a ST bottom & presently is consolidating with slightly upward bias targeting 1.8865/90. I’ll install entries as follows: a).- Buy HSL 1.8745, stop 1.8695, target 1.8865. b).- Sell 1.8865, stop above 1.8915, target 1.8665/40.
The Swiss probaby found a ST top & currently is consolidating with downward bias, targeting around 1.2065 support level, B4 making another attempt higher toward MT resistance target around 1.23. I’ll make two entry choices: a).- Sell HSL 1.2160, stop 1.2210, target 1.2065 & b).- Buy HSL 1.2065, stop below 1.20 target 1.23 resistance level.
Plan: strategy is working well. 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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