Tuesday, June 23, 2009

Technical Picture - Narrow Range Chop Ahead of FOMC

As expected, and after a mixed start, the markets took out yesterday's lows amid choppy trade following weak data. The afternoon provided no relief, in fact it just got tighter and choppier.

At the EOD we have a spinning top type candlestick which foreshadows the end of the near-term move.

Tomorrow's FED meeting might give us a reason to trade, but it could be quiet leading into the announcement at 2:15 EST.

The markets have priced in no interest rate changes. The $USD which had formed a bullish base, has now backed off. Gold which breached its trendline, looks like it will attempt to regain it from an oversold level.

Few trade opps today, but ABX and several large cap gold plays, set up early ambush trades as they failed at the 62% Fib. retracement of the PDH/L. After breaching yesterday's low, ABX reversed and set up a long.


Day Tradr said...

Loving the ambush setup so far. I had an ambush trade in CELG today though my entry was before it took out the 38% because of the trigger candle.

TJ said...

Good eye Day Tradr. I also took that trade - same as you posted on your blog.

The ambush on ABX was a little choppier so I had to wait till it broke support.