Mexico gives a sign of lifeAfter staying over a month at the lowest levels of the year, almost 10% down for the year, but finally the market has been able to recover. But the fundamental data that has been pushing this move up is quite bizarre. Perhaps we are out of the water and I hope so as some other positions in Mexican stocks will be affected by the performance of this recovery. So far the recent move looks promising as it has clearly broken above the 25MA which will now serve as support as price attempts to climb into a higher deviation. Successfully breaking above the 200MA would place the index out of trouble for the coming time. Let's hope for the best and If the USA rides into euphoria, perhaps Mexico can ride along as well.
Additional to the analysis here, I give a great visual description of what my indicators tell me and how I read them. The same is true for the short term deviation, which helps me see the finer movements of price action.
Trendformation
Crazy people making crazy claimsRecently news outlets have been reporting in 2 things about the US-Mexico relationship 1st is the super peso. 2nd is the lowering of interest rates in the USA. When looking at the news I saw multiple articles contradicting themselves. Saying things like "the mexican peso got stronger because of the rasing inflation" or as in this one where it says the "the advancment is atributed to the coments of Jerome Powell, which gave hope to rate cuts" as you can see in this one : elmanana.com.mx
Meanwhile you have this one which shows raising inflation in Mexico, which I have to admit it's true, the cost of living in mexico is rising. This means that every day the mexican peso es less able to afford goods or services.
www.msn.com
On the other hand with the united states' recent slight decrease in inflation has prompet the FED to be more inclined to realize a rate cut. This in order to boost the markets before the elections. This is very likely to excite the markets, as money from bonds will likely migrate to the stock market. Contrast this with Mexico where the central bank is claiming to reach it's inflation target by the end of 2025.
www.msn.com
For these people I have some basic economic facts they should be aware of. When you have rasing inflation your currency doen't apreciate it depreciates. Thats because you aren't able to afford buying as much with the same amount. Therefore if the inflation of you currency increases while the inflation on another currency decreases then the most likely outcome is that the decresing inflation currency will apreaciate in contrast to the other one. Aditionally if the US market begins to grow at a faster rate in contrast to the mexican market then the currency will also depreciate. Therefore saysing that the lowering of interest rates in the USA is good for the mexican peso is just insane.
DOUBLE TOP AND DOUBLE BOTTOM / TRADE FROMATION 📈📉Hello Traders!
I want to show you how to recognize on the chart the double top and double bottom formation.
Recognizing double tops and double bottoms is a key aspect of technical analysis in trading. These patterns often signal potential trend reversals and can help traders make informed decisions. Here's a brief description of how to recognize each:
Double Top:
Formation: A double top pattern typically forms after an uptrend and resembles the letter "M." It consists of two peaks that reach a similar price level, separated by a trough (valley) in between.
Symmetry: The two peaks should be roughly symmetrical, indicating that the buying pressure that led to the initial uptrend is waning.
Double Bottom:
Formation: A double bottom pattern usually forms after a downtrend and resembles the letter "W." It consists of two troughs at a similar price level, separated by a peak in between.
Symmetry: The two troughs should be approximately at the same level, suggesting a potential exhaustion of selling pressure.
Additional Considerations for Both Patterns:
Timeframe: Analyzing the timeframe is crucial. Patterns on longer timeframes generally carry more significance than those on shorter timeframes.
Confirmation: It's advisable to wait for confirmation before making trading decisions. This involves waiting for the price to break the neckline and observing sustained movement in the confirmed direction.
Target and Stop-Loss: Calculate potential price targets and set stop-loss levels based on the height of the pattern. This helps traders manage risk and optimize reward potential.
EURNOK - UPTREND FORMING(?)This post is a bit hypothetical and completely out of character for me, because I usually trade after I've received complete and total indication that moves are going to play out in my favor, but I've seen this pattern play out so many times that it seems silly not to at least make you guys aware of a possible way this pair could develop. I see an uptrend forming here, considering the strong RSI, as well as the recent bounce off of the support. Keep an eye on this one, and get in if you feel comfortable.