Hi Traders! Weekly summary and review January 7th, 2022 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find the short explanation of all the trade setups we had this week and how it has currently developed now.
Trading Ideas (Blog Posts)
Oil – My idea here was “On the the H1 chart, we could see that the price which is moving higher has created a bearish divergence between the first high that has formed at 76.740 and the second high that has formed at 77.247 based on the MACD indicator, which we may consider as evidence of bearish pressure. Also, this bearish divergence supports the daily bearish hidden divergence which makes this bearish view stronger. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme here as well, this means that the price has reached it’s extreme in three consecutive timeframes which is another good signs favoring the bears. Until the H4 key resistance zone holds my short term view remains bearish here. If we get a valid breakout below the 74.00 level we may then consider it as a validation for the bearish view and may expect the price to move lower further”.
Current Scenario – The price action didn’t follow my analysis here, the validation for the bearish view which is a valid breakout below the low at 74.00 didn’t happen. Currently the price has moved higher, broken above the key resistance zone and is holding above it. My current view on Oil is neutral.
Bitcoin – My idea here was “Looking at the H1 chart, we could see that the price which was moving lower has created a bullish divergence that has formed between the first low that has formed at 45641 and the second low that has formed at 45517 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. Until the H4 key support zone holds my short term view remains bullish here. If the price moves higher and breaks above the last high at 47500 with momentum creating a bullish convergence based on the MACD indicator, we may then consider it as a validation for the bullish view. We may then expect short term bullish moves to happen here after possible pullbacks”.
Current Scenario – The validation for the bullish view which is a valid breakout above the high at 47500 didn’t happen here. Alternatively the price moved lower and we got a valid breakout below the strong support zone, thus invalidating this bullish view. My current view on Bitcoin is neutral.
Dax – My idea here was “Looking at the H1 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 16201.80 and the second high that has formed at 16287.30 based on the MACD indicator. The price then moved lower and broke below the last low at 16076.80 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidences of bearish pressure. Generally, after a bearish convergence we may look for corrections and then further continuation lower. Currently, it looks like a correction is happening. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet another evidence of bearish pressure. Until the H4 key resistance zone holds my short term view remains bearish here and I expect the price to move lower further”.
Current Scenario – Based on the above-mentioned analysis my short term view was bearish in Dax and I was expecting the price to move lower further. The short term bearish move happened exactly as I expected it to here, the price moved lower further and provided a nice move to the downside so far.
You can see this move clearly on the M15 chart below.
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To your success,
Vladimir Ribakov
Certified Financial Technician
