Tuesday, April 26, 2011
Trend for 26th of April 2011
Some nice daily trends today! As I expected silver made a reversal today from its multi year high of 49.76 level. However, I have no intentions of shorting it. I am waiting for the commodity to find its short term bottom, that bottom to be confirmed and then I will go up again. I think it is very good that we have reversals and corrections during trends; because if the price simply moved parabolic, it would simply mean that there trend will exhaust itself very fast and prices would come back to ranges in no time. So, if you have a mindset of a long term trader I believe going long silver in the nearest future will be a good choice for you.
Pound was the biggest loser of the day. There was some data of medium and low importance, but I am not sure if that caused a collapse in prices. If we look at gbp/usd, it is still holding above the breakout level of 1.6420. If you still remember I wrote on Sunday that I expected the pair to come back and test the above mentioned breakout level, because I saw a bearish structure on the charts. It did not happen on Monday as liquidity was very low, but it is happening today.
We have important forex data tomorrow which could cause short term trends in forex pairs and other securities. We have Consumer Price Index from Australia, Gross Domestic Product from Great Britain, US Federal Open Market Committee Rate Decision, Bernanke speech and Reserve Bank of New Zealand Rate decision. I think that all of the data can cause great moves. However, US Open Market Committee Rate decision could have the biggest impact. So, do not have too much exposure before the data comes and if you want to trade the data use only limit orders to trade it.
Read my previous post:
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.