Housing Starts, Stochastic up, rebound from daily chart -->$660 profits
5 min Emini Nasdaq 100
Daiy Candlesticks
Hi,
Today, I will teach you how to uitilize the daily charts as well.. If you look at the daily chart above, you will notice that price pulled down to the mid-line of the envelope as there was a huge pullback yesterday... There is still a long term uptrend.. so logically, we should expect a rebound.. but, caveat here --> don't just assume that this is going to happen.. look for confirmation signals first.
Price pulled back and plunged downwards from 10:00 am onwards, I did not enter the market as I believed in the hopothesis stated above... then come, 11:10 am, and stochastics started to turn up plus price action accelerated with a huge white candlestick... I entered 1 contract at 1878 and another 2 contracts at 1882.5 when price paused as it meets the moving averages...
There was a point in the trade when price pullbacked all the way to 1880 and I was tempted to get out... but basically I maintained my original hypothesis that there's goining to be a rebound and we haven't seen much of a rebound yet, my bottom line was just slightly in the red.. not a big hole,,, and I decided to hold my position...
Well, I was right and price went up all the way to hit my red moving average and I knew it was time to get out... I got out at 1892. with $660 profits.
From Briefing.com
April housing data brought mixed signals. Starts on new homes rose 2.5% to a 1.528 million annual rate. That was above expectations. But permits for new construction dropped 8.9% to a ten-year low at a 1.429 million annual rate. Homebuilder confidence has fallen recently and starts are likely to dip in upcoming months. The sector remains mired in a deep slump.