Video Update: 18 October Market update

Welcome to the video update for Monday, October the 18th.  First chart up is the EUR/USD pair weekly chart where last week price continued trading outside the upper keltner channel, telling us that currently the momentum and trend is strong to the upside.  Last week’s candle was a doji, so that means buyers may be taking a breather.  Note where overhead resistance and underlying support may come in to play.   For a look at the market structure on the daily EUR/USD pair, Trader Rick looks at previous price action where price broke out of a balance area or a trading range and price then rallied directionally to where we are today.  Knowing this market structure would keep you out of taking short positions unless scalping or day trading.  

Gold made new highs again last week, reaching almost the $1390 level with no correction in sight.  When price retraces look for support in the $1260 area or the lower keltner line. 

Moving to the stock indexes, first chart is the Dow weekly where price moved higher last week, forming a spinning top candle completely outside the upper keltner channel.  You know what that means!  Price is in position to form a lower high, a double top or a higher high.  A weekly close below last week’s low would be a negative.   On the daily Dow chart, Trader Rick is watching a large ab=cd pattern potential.  Price is trading just above the D target with the 1.27 fib at 11330.   If price retraces here look for support at the lower keltner. 

Final charts analyzed are the ER weekly, ES weekly, ES 203 minute and the 15 minute chart. 

Good trading!

Tags: ab=cd pattern, daytrading, keltner channel, market structure, outside the keltner channel, trading range