Weekly Summary And Review May 28th 2021

Hi Traders! Weekly Summary And Review May 28th, 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.

First, we will see the trade ideas that I shared in my blog:

Trading Ideas (Blog Posts)

GBPCAD – My idea here was “On the H4 chart we have a bullish divergence that has formed between the first low that has formed at 1.69579 and the second low that has formed at 1.68708 based on the MACD indicator. Then the price moved higher and broke above the high at 1.71300 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a flat correction is happening in the form of a range. The price which is moving inside this range is currently nearing the bottom of it. Until the bottom of this range holds, my view remains bullish here and I expect the price to move higher further”.

Current Scenario – Based on the above-mentioned analysis my view was bullish here and I was expecting the price to move higher further until the bottom of the range holds. The price action followed my analysis here and the price bounced higher from the bottom of the range, delivering 130+ pips move so far.

You can see this move clearly on the H1 chart below.

 

 

Amazon – My idea here was “On the H4 chart we have a bearish divergence that has formed between the first high that has formed at 3431.55 and the second high that has formed at 3552.20 based on the MACD indicator. The price then moved lower and broke below the last low at 3300.92 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 and until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further”.

Current Scenario – My plan didn’t change here that is until the strong resistance zone (marked in red) shown in the image below holds my short term bearish view still remains the same here.

 

USDILS – My idea here was “On the H4 chart we have a bullish divergence that has formed between the first low that has formed on 17th May 2021 and the second low that has formed on 26th May 2021 based on the MACD indicator we may consider this as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bullish pressure. Also currently there are no signs opposing this bullish view here as well. So everything looks good here for the bulls and until the bottom of the daily range holds my view remains bullish here and I expect the price to move higher further”.

Current Scenario – The price action is following the bullish expectations so far. Until the bottom of the daily range holds my bullish view still remains the same here.

Note: You can follow me here on Trading View and also on my blog to get similar ideas on daily basis)

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