In my last post about the results of the non-farm payroll, I said that I believe that GJ was bullish. Also, there was a gap around 146.88 that needs to be covered.
I believed that GJ was bullish, and it was falling down to get more buyers to push it up to cover the gap. Indeed, GJ rose up to cover the Gap. But it was stuck at that area. That area formed or acted as a resistance, so GJ couldn’t move up. Also, the period was a holiday period. There are not a lot of trading activities that are going on during the holidays (read summer holiday trading). GJ broke upwards towards new year, then it stared it way all the way down. At the time of writing this post, GJ high for 2010 was on the 4th of January 2010, and it is still going down.
Have a look at all what I am saying at the chart below.
The way I am seeing it, GJ is going down, there is no support for it. If you can zoom out, you would notice where GJ would find a major support or resistance. The best way to trade it is if you see a signal at this points. Well, this is just talk. I wish it was easy like that. It is easier to talk than to trade that because trading involves a ot of emotions.
In an unrelated trading, take a look at Oil chart.
I don’t know if it is doing a head and shoulders, meaning that it would go down, or if it is a double bottom meaning that it would rise up. Today, 22nd of March is showing bearish, i.e it is going down. I don’t trade oil, but I tend to follow it to know the sentiment of the market. A higher oil price means a lower dollar, that means that GJ would likely fall because it would follow USDJPY. Only GBPUSD would be able to save it. Just incase you want to follow oil chart, the symbol of oil is CLQ08.NYM OIL or CLK0. Online trading.
