Good morning, Traders!
Yesterday, the U.S. Fed hiked rates by 50bps, which was expected. Traders should take serious note of the following:
The major indices appear to be retracing from their highs and key resistance levels.
Major forex pairs are also retracing on the daily timeframes
These are seen as Weekly pullbacks or retracements rather than trend changes at this time.
Swing traders on higher timeframes are waiting for signals between today and tomorrow.
Here are my market picks for today:
XAUUSD (Silver), Daily, bullish
Silver has an excellent (and healthy) uptrend in place. It is currently retracing back into the major moving averages, where I anticipate a bullish candle will be forming shortly.
I will place my entry 2 pips above the high of this bullish candle, with my stoploss 2 pips below the low.
I plan to take partial profits at 1:1 and target 3:1 or the next major resistance level on the weekly timeframe.
As there is a lot of economic calendar news, I will reduce my risk for this trade to 0.5% or less.
Traders who take partial profits when price reaches 1:1 often enjoy fewer losses.
US Crude Oil, Daily, bearish
US Crude Oil has recently broken down through support at $76.12
It has now retraced back up into that same level and is testing it for resistance.
Should today’s candle close lower, I am anticipating price will continue back down to the recent lows at $70.26
My entry will be placed around today’s closed candle, 2 pips below the low, with my stoploss 2 pips above the high.
Again, with all of the high-impact news expected this week, my risk for this trade will be 0.5% or less, but not more.
I will likely close the trade just ahead of $70.30 in case a double-bottom is in this commodity’s future.
Taking partial-profits at 1:1 is a great way to mitigate risk, as well as targeting a realistic price point, such as a major resistance level, or 1:3 risk-to-reward point.