Since some of you mentioned EUO (cspirit, Rank, etc) I really
like EUO, it's getting to be low risk down in here
There is positive divergence via the MACD histogram so I think
it's getting close to a bounce, however the regular MACD still
needs some work, therefore I think EUO will likely have a nice
bounce soon but then have another pullback and form divergence on
the regular MACD
Longer term wave count I'm not sure if this is a bullish ABC
pullback or a 5 wave downtrend? If it's a 5 wave downtrend,
then it's going lower over time after a bounce.
Otherwise, the 13/34 EMA's tend to trend well, for any major
trend changes, the 13 EMA needs to cross up over the 34 EMA, that's
why I think the first good bounce/rally will be sold because those
MA's need to come together more over time.
I want to go long of this Matt but the only thing holding me
back is that euro retail investors are still net short as of last
Friday. I will do a further analysis tonight when COT Data is
through
Otherwise, its due some form of bounce for sure
1.35 I think is the 50% fib of the recent peak and trough with
1.39 being the 61.8% level of the move so it will either turn at
1.35 or before.
The reason I like it is its a currency play and slow
mover. I don't want to get heavy swing wise on Index stocks
just yet. Want the market to show its hand and scalp only
trades right now or buy in PM and sell next day AM on pops etc.
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EUR swing trade idea
Posted by matt on 4th of Aug 2010 at 02:48 pm
Since some of you mentioned EUO (cspirit, Rank, etc) I really like EUO, it's getting to be low risk down in here
There is positive divergence via the MACD histogram so I think it's getting close to a bounce, however the regular MACD still needs some work, therefore I think EUO will likely have a nice bounce soon but then have another pullback and form divergence on the regular MACD
Longer term wave count I'm not sure if this is a bullish ABC pullback or a 5 wave downtrend? If it's a 5 wave downtrend, then it's going lower over time after a bounce.
Otherwise, the 13/34 EMA's tend to trend well, for any major trend changes, the 13 EMA needs to cross up over the 34 EMA, that's why I think the first good bounce/rally will be sold because those MA's need to come together more over time.
the 60 min chart sports a bull wedge of course.
EUO chart
I want to go long
Posted by vimal on 6th of Aug 2010 at 09:42 am
I want to go long of this Matt but the only thing holding me back is that euro retail investors are still net short as of last Friday. I will do a further analysis tonight when COT Data is through
Otherwise, its due some form of bounce for sure
1.35 I think is the 50% fib of the recent peak and trough with 1.39 being the 61.8% level of the move so it will either turn at 1.35 or before.
Very difficult one!
vimal - EUO is still
Posted by matt on 6th of Aug 2010 at 09:52 am
vimal - EUO is still in the downtrend wedge, it has yet to break out of it, the Dollar of course continues to sell off and so it EUO
The reason I like it
Posted by cspirit on 4th of Aug 2010 at 02:59 pm
The reason I like it is its a currency play and slow mover. I don't want to get heavy swing wise on Index stocks just yet. Want the market to show its hand and scalp only trades right now or buy in PM and sell next day AM on pops etc.