Hi Traders! Weekly summary and review July 2nd, 2021 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 in this week and how it has currently developed now.
Trading Ideas (Blog Posts)
Oil – My idea here was “On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Also, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. Until the strong resistance zone (marked in blue) shown in the image below holds my view remains bearish here and I expect the price to move lower further”.
Current Scenario – The price action didn’t follow my analysis here and this idea failed as the price moved higher and broke above the strong resistance zone and is currently holding above it. I see this as a contradictory sign opposing the bearish view. Thus the bearish view has got invalidated here, my current view on Oil is neutral.
EURAUD – My idea here was “On the H1 chart we have a bearish divergence that has formed between the first high that has formed at 1.58271 and the second high that has formed at 1.58598 based on the MACD indicator. The price then moved lower and broke below the last low at 1.58132 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. So based on all this my view here is bearish and until the strong resistance zone shown in the image below (marked in blue) holds I expect the price to move lower further in the short term”.
Current Scenario – Based on the above-mentioned analysis my view was bearish here and I was expecting the price to move lower further until the strong resistance zone holds. The price which was moving higher reached the strong resistance zone, respected it and bounced lower from this zone, delivering 70+ pips move so far.
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To your success,
Vladimir Ribakov
Certified Financial Technician
