Should start blogging after v long break

Hi Everyone...I am back to blogging on my trading...been busy with my personal stuffs and also at the same time reading up and brushing up on my trading skills in closed doors so i can produce much more better views with all of you! :) Above all, we trade to win and not trade to trade :P

Today I will share two charts which i have intention to trade this coming weeks, the DJI and EURUSD pair.

EURUSD

 Summary: Bearish Bias

EURUSD should be a much clearer trend than the DJI which i will cover later.

Resistances are at 1.3058 and 1.3144 (also 50% retracement level of fibo W3)

Supports are at 1.2828 and 1.2674

This pair as u can see is in the wave 4 (complex since Wave 2 is simple, alternation rule) of the fully extened wave 3 (note that it is a down trend). Corrective A move is on the way and it looks like eurusd is forming a desending triangle which is bearish. But on a cationary notes, break out at either sides of triangle will requires confirmation. But using EW rules, if this assignment of the wave is right 1.3196 should not be broken (UP) since wave 4 dont overlap wave 1.Monday/ tuesday might be a good entry point - for short - since it is 22 days (fibo number) from top of 1.3144 and 7 days (lucas number) from prior top. This might be a good entry day if price hit upper trend line and come down with good confirmation candle on the next day e.g. bearish engulf, harami or etc.

Looking at 4 hr chart also tells u the same story with signal already showing at 123 time bar (from top). This can be seen on the chart and should be self explanatory.



DJI

 Summary: Bearish Bias

DJI is still hovering around the 13300 support which is a support that was formed from prior resistance.  A double top with neckline at 13410,If this double top is valid, the target point will be at 13160.

Currently,

 2 levels of resistances are at 13410 and 13660.
Note: 13410, double top neckline. and 13660 a all time high.

2 level of supports are at 13280 and 12800.
Note: If one have noticed the pattern is very similar to that of mar-apr 2012. currently, i will not do any shorting anymore until further confirmation can be seen from the break down of 13280 region which might be a strong support as for now.

In perspective of Eilliot wave, wave formed as of now is forming a diagonal wedge which might just have ended its E wave up. With the double top + diagonal wedge with ending E wave and a break out of lower trendline, this could be trouble for long-ist...With confirmation of support break at 13280 convincingly I will short with conviction.HAHA. Let's see.

In terms of indicator, both MACD and RSI were in divergence with price movement of the dow.


Meanwhile happy weekend to all and cheers to happy trading! =)