Video Update: 31 January – the week ahead

Welcome to the video update for Monday, January the 31st.  Note the multiple reports due Thursday morning and the important employment report at 8:30am est on Friday.   With Monday the last day of January we will look at the bigger picture charts.  First chart up is the monthly EUR/USD pair where price will most likely close above last month’s close.  What type of candle is this?  Keep in mind the possibility of a large ab=cd pattern with the D target coming in just above 1.1400.  The weekly chart has a conservative 9/30 short setup.  Note the candle.  Sellers present?  Daily chart has a potential bullish bias.   Note support level.  60 minute chart shows initial resistance at mid-stick of the wide range candle.

Trader Rick looks at the monthly gold chart where we may get a lower close for January compared to the previous month.  Keep in mind the bull trend is still intact.  The weekly chart indicates we may see a lower high IF we get a rally.  The 1.27 fib extension on the daily chart did not hold but so far the 1.618 fib extension has held at $1310.  This has bullish implications.

In the stock indexes, the monthly DOW chart is shaping up as a narrow range month, indicating hesitation.  Keep in mind tho that price is trading completely outside the upper keltner.  The weekly DOW closed lower than the previous week, but, price is still trading outside the upper keltner.  The daily DOW made higher highs Wednesday but not the ES, NQ and ER.  Divergence was a red flag.  The daily chart shows the wide range down candle on Friday, bringing price down to the lower keltner.  See what pattern to look for this next week.

Good trading!

Tags: 1.27 fib extension, 1.618 fib extension, ab=cd pattern, conservative 9/30, upper keltner channel