Thursday, April 23, 2020

Gold Trade Plan

Stock and commodity indices are rebounding since hitting the March low but guess which is the real market leader in relative performance ! It’s GOLD. For those who have been following me, I have been most bullish on Gold since Nov 2019 and I have been guiding my trading community on Gold’s Price Action. I posted a trade plan of gold 2 weeks and it has worked perfectly. Watch this updated Gold tradeplan and it’s relative performance amongst all the major stock indices in the world like China a50, Hang Seng, Dow, Nasdaq and STI. The cards are laid , if you need to invest gold should be the choice.

All posts and charts are for educational and illustration purposes only
Wednesday, April 8, 2020

Simple Support and Resistances strategy that works in any time frame!

Yesterday Dow Jones went thru a roller coaster swing going up by nearly 1000 points and gave away all the gains by market close, but last yesterday's price action established key support and resistance on the 1 min chart that i used could still use during the Asia trading hours to make some profit .

Key support and resistance levels were 22,826 and 22630. Sometimes trading can be simple only if we know how to look out for keys.

All posts and charts are for educational and illustration purposes only
Wednesday, April 1, 2020

Has the market bottomed?

Last week, I had seen consecutive three day surge of all US major indices averaging nearly 22% gains which marks the best performance in a decade last week. As such, it is very normal for most of our viewers to think that the markets have bottomed and time to get into buy position for heavily discounted blue chip stocks.

The recovery I observed for the past week could be a technical one ("dead cat bounce") rather than the market hitting the bottom. We could be moving towards a new trading environment where price becomes volatile (whipsaws), with weaker markets hitting new lows while stronger markets start to find a more significant bottom.

Thus, with the best part of the initial market rebound behind us, I expect markets to work towards their way back to their March lows (as shown in Chart A).
Looking back at the carnage in 2008 (Figure 1), a typical rebound in a bear market ranges from 12% - 24.2% before testing for new lows.

Also, viewers need to understand that the direct effect of the virus is just the start. With lockdowns being imposed on the world ’s demand drivers, world trade growth is about to crash. The speed of decline will be matched only by the freeze in trade finance that occurred in the Global Financial Crisis.

Check out this week's episode of RHO Market Chat:

All posts and charts are for educational and illustration purposes only