None of the setups posted last week did get completed, however both setups on China A50 index and GOLD (XAUUSD) are still valid. The markets came closer to completion of earlier mentioned setups last week and there is a good chance that those position will be filled next week. Will kick in with potential setups as there are quite many for the next week
French CAC40 index is quite close to Cypher pattern completion. What we have seen last week on this market was waterfall like drop. Perhaps at this stage of the year some profit taking took place. Unless this is major reversal to the downside, there will be pickup point on the way down, from where the price should go north again. As it stands at the moment at the completion of this pattern buying opportunity will be very much against prevailing downtrend. Textbook entry of this bullish pattern will be at 4016's area, however more than 100 pips of risk has to be taken on board initially, which is far too much in my book from risk management perspective considering entering against the trend.
This FX pair is very close to completion of bearish BAT pattern confluence with AB=CD as i write at the moment. Again as mentioned in previous setup this is very much position against the trend. Technically BAT pattern completes @1.3755's area, with this entry more than 100 pips of risk has to be taken on board as well. Personally will be looking at the entry around 1.38's if the price will get there. Surely ideal entry would be @1.3755 area, however risk parameters play much more important role in this case in my book, see the chart below.
Finally another counter trend setup is on GBP/USD pair where bearish Cypher pattern has potential to form bearish top formation. The pattern is better seen on 1 hour chart, however risk parameters make more sense on 4 hour chart. More than 50 pips of risk must be taken on board at the entry @1.6406's area, perphaps risk/reward ratio may not seem to be very attractive on this pattern for some traders.
This will sum up this week, have a good one traders.
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