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EUR-USD Bull Flag Breakout Could Spark Next Leg Higher In Gold Stocks

Watching the EUR/USD for any follow-thru to this bull flag breakout, which would have bearish implications for the $USD & bullish implications for gold & dollar sensitive commodities.

EUR-USD 4-hour Dec 8th

EUR-USD 4-hour Dec 8th

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Dec 8, 2015 1:44pm|Categories: Forex (Currencies), Gold & Commodities|Tags: , , , , , |2 Comments

2 Comments

  1. tom4930 December 8, 2015 9:21 pm at 9:21 pm

    Randy,

    As I am considering subscribing to your services when they roll out, I need to completely understand your methodology.

    WTIC has sunk to the high 37’s. Are you still in the UWTI trade and waiting until a BMR? It appears from your active trade posts that you are but you do not list stops and therefore, I can only assume that you are just waiting for an upturn in WTIC. Is this correct? Thanks.

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  2. rsotc December 9, 2015 9:43 am at 9:43 am

    tom4930. Yes, I am still in the UWTI trade (personally, I took a DWTI short). Typically, but not always, I use a minimum R/R of 3:1 on a trade & this most recent long trade on crude has well exceed that already. My thought process and plan for this trade is that crude looks to be setting up for a major reversal based on both the daily & weekly charts. I think that reversal will come soon & that the initial move off the lows is likely to be explosive.
    More often that not, I do list suggested stops on trades but did not do so on the recent UWTI long. Suggested stops, just like the price targets, are only that…suggested & the max. suggested stop is usually calculated using a 3:1 or better R/R based on the final price target. On the recent string of chart of UWTI & USO, I was using the 60-minute time frames which focus on near-term targets (typically a few weeks to months) whereas if & when crude finally shows some decent evidence of bottoming, I will turn my focus back to the daily & weekly charts.
    If we get a reversal in crude soon, as I still expect, I will add to my position if & only if the charts start to firm up (only averaging up on the position). Regarding the stops, I should have updated my thoughts on the the UWTI trade this week & removed it from the Active Trades category as it has exceeded most reasonable stops based on the final target that I listed on the 60-minute chart. Until an official update, here’s a link to the USO 60-minute chart showing that we still have bullish divergences in place. The purple arrows show the projected measure move from the break below that recent consolidation zone although the with bullish divergences & more importantly, that recent volume surge which looks to be a likely (near-term) selling climax, I don’t think USO will continue falling all the way to the measured move.
    https://www.tradingview.com/x/xDYr63Sw/

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