Skip to main content

FCPO 3rd Month Contract - End of Downtrend?

FCPO 3rd month contract has been in a downtrend since early Feb 2017 making lower highs and lower lows and containing its price action below its 20-day sma until May 2017 when it started to go above its 20-day sma. It stayed above its 20-day sma until the last week of May 2017 where it traded below its 20-day sma line again.
Recent price action showed FCPO briefly broke below its Apr 2017 low but quickly closed above it the next day followed by a long bullish candle to create a false break. At the same time price formed a bullish divergence against MACD where price made a lower low but MACD traced a higher low. This is a technical clue that FCPO downtrend could be ending and its price could be heading higher.
FCPO 3rd Month Contract Daily Chart

Disclaimer:
Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and any information presented in this blog.

Comments

Popular posts from this blog

FOREX and CFD Trades 12-16 Jun 2017

I had a good week this week. I completed 4 trades and out of these I made 3 winning trades and 1 breakeven trade. There was no losing trade.
I continue to keep my risk 0.5% or less of my account size per trade. Overall I made +3.20%of my account size for the week.
Here were my trades.

GBPJPY (+1.42%)

Setup: Pullback trade to role reversal S/R level in a bear trend on H4 chart
Entry: Sell 140.849 SL 141.20 TP 139.10
Exit:   139.472 and 139.451

GBPJPY was in a bear trend on its H4 chart when I made this trade. I entered short on 9 Jun 2017 at 140.849  after a pullback rally to a role reversal S/R level.  I placed my SL at 141.20 and TP 139.10 risking -35.1 pips with a potential +174.9 pips reward for a 1:5 risk/reward ratio. I could have achieved the full reward had I not micro managed it.
After a down move that just missed my TP target, I exited manually on 12 Jun 2017 at 139.472. The subsequent candle did reach my TP target but I had lowered both my SL and TP such that my remaining un…

Forex and CFD Trades 5-9 Jun 2017

I completed 8 trades this week with 2 winning trades, 1 breakeven and 5 losing trades. This week I had decided to reduce my risk to 0.5% of my account balance after last week losing week. It was the correct decision to made. Although my hit rate was only 25% but because my losers were small, I still ended up with a gain of +1.26% of my account size for the week.

GBPUSD (+2.127%)

GBPUSD was in a bear trend on the H4 chart until it formed a potential triple bottom reversal pattern. It broke above the neckline of the bottom reversal pattern and I entered the trade long on pullback at 1.2845 on 01 Jun 2017. I placed my SL at 1.2805 and TP at 1.2930. The trade moved up to my TP target and was closed at 1.29301 on 05 Jun 2017 to net me a +2.127%gain.

EURCAD (-0.467%)

EURCAD was in an uptrend on the H4 chart when I made the trade. It formed a bullish hammer candle at the 20 bar MA line and I entered long on 05 Jun 2017 at 1.51802 with my SL at 1.5130 and TP at 1.5240. I was expecting the uptr…