I went long on $NUGT after the test of key support today. I always keep my trading simple and this is as simple as it gets. I am recommending traders buy the gold miners above key support with a tight stop loss and a target near the upper resistance of the 2017 trading range.
Here I take a quick look at the 500% rally in Bitcoin price in 2011-2013 to see what we can learn about how this market has corrected in the past after making huge gains. We can spot a few key characteristics and levels. In my next post, I will apply this analysis to the 2017 rally and see what we might expect from the current correction.
BTCUSD retraced 50% of its all-time gains on January 17. The same trading day saw BTCUSD retrace 61.8% of gains since November 17 as well as a test of the 144 day EMA, which has acted as dynamic support going all the way back to October 2015. These are signs of a healthy correction and indicate the up trend in BTCUSD is in tact. My limit orders filled at 10k,...
Here I apply some simple trend analysis from the 2011-2013 500% rally and subsequent correction in Bitcoin price to the 2017 rally and current correction. I make the case that traders should be very cautious at current levels and that we can expect a correction to 4300 before another significant rally.
I've got my eye on a potential swing trade setup in semiconductors.
India is bouncing at a key market level today. Aggressive traders can get long immediately. Patient traders can watch for a signal next week. These emerging markets gap a lot and often leave traders wondering what is happening. Trend analysis and risk management makes our life a lot easier here.
I've made a lot of money in the powerful bullish market in Korea. This trade set up is very simple. If we see a bounce from current levels within the upward channel early next week, then I will get long.
I'm taking another long swing trade in oil in line with the powerful up-trend in this market. We may look to add on further price retracements toward our stop, but we will not take on more risk by lowering our stop.
Utilities have taken a major hit in the risk-on market environment we've seen lately. Last week $XLU completed a perfect 61.8% retracement of recent gains and showed a strong bounce at that key support level. I think we have an excellent buy for a swing trade at this level with a view to hold patiently for 1-3 months and take profit at all time highs.