Brexit Day 4 the uncertainty continues. The US stock markets both closed below the key 200 DMA yesterday, normally a signal for further sell–offs and a bearish market ahead. However, following a lackluster session in Asia there was short-covering on GBP, commodities and European bourses this morning which prompted me to look for a similar bounce from oversold on US stocks.
The USA500 had breached both the 200 DMA and the powerfully psychological support at 2000.00 to close at 1990.67. The overnight retrace was significant with the 2000 level offering support. The oversold Daily time frame and pin bar entry on the 1 hour time frame provided a simple Target 1 at 2022 and Target 2 at 2042. Target 1 was reached shortly after the US stock markets opened today.
I explained the approach during today’s live analysis webinar together with the importance of risk management and always doing what is probable.
Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
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