Both gold and silver markets fell rather significantly during the session on Thursday, testing the bottom of their respective consolidation areas. Because of this, we are looking for short-term supportive candles in the region of $1180 in the gold market in order to buy calls, just as we would like to see some type of supportive candle in the region the $16 in the silver market to serve buying calls there as well. Both have the possibility and opportunity to break down though, so if we get a significant move lower, both would be markets we would be buying puts in.
The WTI Crude Oil market is pressing up against the $60 level at the time of writing, and it seems now that a break out is going to happen sooner or later. Once it does, and we get above that $60 handle, we believe that buying calls will be the only move you can make. We have no interest in buying puts as the upward momentum continues to look very strong.
The EUR/USD pair continued to look bullish at first during the session on Thursday, but struggled at the 1.12 level, showing signs of exhaustion. Because of this, we feel that the market is probably going to pull back and try to find support near the 1.10 handle. We are buyers of puts on exhaustion candles off of short-term charts. Look for shooting stars especially, but even long red candles can show signs of capitulation. Keep in mind that the ISM Manufacturing PMI numbers could have a slight effect on the US dollar today.
Comments
Log in or sign up to join the conversation.