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AUDUSD: continues lower from our last sell signal.
The Aussie-Dollar pair is oversold on the daily charts (see below) and likely ready for a quick pop up once the GAP is filled at .9775 to .9750 area. After that, expect further eventual downside to the Andrew's Median Line around .9630, .9500 area where our medium-term price target is, or to the lower Median Line at .9300. Final targets for this intermediate bear move is the .9000-price area, where the trend-lines converge. At that point, a more significant reversal up move for weeks should commence.
ACTION: Look for intra-day reversal POP-up opportunities at .9750 for 100-150 pips, then watch 60-minute trend to turn south again for sell opportunities (weekly and daily charts below).
EURUSD continues lower from our last major sell signal. The last time I said we would see the Euro drop anther 500 points. We go close in one week!
The daily chart is oversold and we are seeing a short pop up in price. Another few hours down followed by 12-36 hour rally afterwards would likely set it up for a juicy sell signal that takes it to the targets on the weekly charts of around 1.2530-1.2500. Keep in mind that lately, several targets in other markets have been handily exceeded.
ACTION: Until otherwise decided, we will continue to recommend selling EURUSD on intra-day and daily rallies as long as the respective trends are heading lower. See the weekly/daily Euro charts below:
GBPJPY: This currency pair is oversold on the daily charts (see below) and likely ready for a quick pop up, yet we expect one more move lower to around the 123.65 area before a more substantial rally takes hold.
ACTION: Short-term traders look for hours of upside then a rollover short with targets into the 123.65 to 123.20 area for a reversal up.
USDJPY was stopped out at break even.
USDCHF: Looks like it had a temporary top of this wave. We are looking for an ABC correction, and it looks like Wave A is complete.
ACTION: If we get a 24-48 hour rally and 60-min trend turn lower, we would then look to sell it into the .9350 area before a likely buy wave sets up for new highs (see analysis on chart below).
GOLD broke out of its tightly coiled range as expected and quickly headed lower. We expected support between 1560 and 1503, with 1525 holding for a nice bounce to 1598 thus far. Now a 24-36-hour sell off is likely.
ACTION: Look for short trade opportunity here for a pull back to around 1565 area, where buyers may try to take it higher. That rally will then determine if gold is actually in a bigger bear move or in a large corrective wedge pattern with still one more move up remaining to finish its 8-year cycle top that was due in late 2011 to 2012. Since seasonals top in Feb to March, we have to be cautious for a while (see daily XAUUSD chart below).
STOCK Indexes: The DJI had a very nice sell off into May 20th time zone, as we have been expecting for the past 3 to 4 weeks, slightly exceeding is initial pattern price target. We are now cautious in this area as some support has been reached, yet computer-generated market forecasts show that lower price targets are still available (see weekly Dow chart below).
ACTION: Look for a quick bounce and a potential retest of lows, with the possibility for further weakness into early to mid June, where an interest rate cycle may give stocks one last push for the election. However, a "crash watch" is still in effect. Be open to both sides now until the pattern assures us that these lows will hold for a while, or if a full blown crash will take hold. Either way, the crash is coming…
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