Welcome to the video update for Monday, June the 7th. A reminder that the indices roll to the September (U) contract this Thursday. We will start with the EUR/USD pair weekly chart and price continues to trade outside the lower keltner channel, telling us that the momentum and trend to the downside is firmly in place at this time. The D target of the ab=cd pattern is not far below. Under the current conditions, don’t be a hero and buck the trend. Look to sell rallies until a 9/30 long presents itself.
Quick look back at the EUR/JPY weekly chart which we have been watching since late 2009. Once price broke out of the trading range, look what took place. Price moved up in to the sell zone, setting up an aggressive 9/30 short. Good reminder to keep an eye on your larger timeframes.
Trader Rick walks you thru the weekly Canada chart where price is holding just above support at 9212. On the daily chart we had a conservative 9/30 setup and in overnight trading the first target is nearby.
Next chart is the weekly crude chart. Last week was an inside week, following an outside week, so look for a break of the inside candle. The daily Crude chart had two 9/30 short setups last week. This can test your patience! This scenario is a very good reason why you should have a written trading plan so you know how you are going to manage this type of price action when your initial target is not hit.
Now to the stock indices. First up is the YM weekly chart where price is just above support. What setup did we have on the daily YM chart last Thursday? You won’t be surprised. Trader Rick shows the 60 minute day session chart from last Friday. Knowing this information during the trading day can keep you from losing money trying to trade countertrend setups such as bullish divergences. Unless you are good at scalping, don’t fight the trend! The NQ daily also had a conservative 9/30 setup last Thursday. Do we see a pattern here on these daily charts? Tis why you want to keep an eye on them!
Last chart is the 129600 volume ES chart. Note where overhead resistance is now after the big down day on Friday.
Good trading!
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