TheÂ June Eurocurrency posted pivot highs of the April 15 and May 3rd reversal swing dates. Both dates marked the end of the corrective bounce and triggered a bearish reversal, followed by a lower market. The euro also posted a 570 point rally, during the two session following the May 6th reversal date. Since then, the euro has dropped to a new low and reached the up-sloping reaction line target objective,on the May 19thÂ reversal date. The marketÂ has completed a full cycle, with time and price coming together on May 19th. The euro rebounded off the reaction line suggesting the downward pressure may be over soon and could set up a possible bullish reversal pattern. For undated trade signals check out theÂ TMV Swing Trade report.
Twenty days after posting a highÂ near the April 21st reversal date, July Soybeans reached the up-sloping reaction target line. The daily low of $9.31Â tested the reaction line before finding support and rebounding to unchanged. ThisÂ completes the five-wave cycle as the Soybeans reach the target objectiveâ€“projected two weeks in advanceâ€“on the projected reversal date. While the long-term trend is still bearish, the short-term cycle suggests a possible corrective rebound from this level. Iâ€™ll have current updates in the TMV Swing Trade report.
On April 5th, July Soybeans posted aÂ low close of $945 1/4 inside the 60% buy window. Two days later,Â Soybeans rallied out of the buy window and traded through the trigger price for a long entry signal. The reverse/forward count projected a new upward price swing ofÂ twelve days from the low closeÂ from April 5th.Â I also used theÂ count to project a targetÂ objective at the down-slopingÂ reaction (red)Â line. After the buy signal was triggered, July Soybeans rallied over 60 cents into the April 21st reversal date and touched the down sloping reaction line -Â at $10.17 â€“ on the followingÂ (trail) day. Soybeans reversed at the reaction line and are currently trading sharply lower. By understanding how to use the â€œaction-reactionâ€ price behavior IÂ could have Â identified the target objectives two weeks in advance. To learn more about this trading technique read â€œUnlocking Wealth, Secret to Market Timingâ€.
July Cocoa - When July Cocoa dipped into the 60% buy window on April 12th, the RT Swing Trader program triggered a buy signal for the July Cocoa at 2934. As soon as the buy signal was triggered, the RT Swing Trader identified April 26th as the projected reversal swing date and placed the reaction target objective at the 3200 to 3250 price objective. As you can see for the chart below, during the following eleven trading days, Cocoa rallied from the entry price at 2934 and finally reached the reaction line target objective of 3228 on the projected reversal swing date of April 26th. This is a prime example of how understanding how to use the action-reaction methodology and being able to identify the proper set up pattern can be used to enhance any trading approach. If you do not have the time to do the proper analysis, the RT Swing Trader will do it for you.
Using the December 12/8 to 12/10 TC swing pattern (trend continuation) I used the reverse/forward count to project the future reversal swing dates for 12/21 and 12/23. The same projections were used to identify the reaction line target objective of 79.15. This means a long position signal was triggered at 76.35 on 12/11. From here, the Dollar index should reach the target objective of 79.15 on or before the 12/23 reversal swing date. The market is currently trading at 78.12.
Did you see this pattern when it formed?
Monday - Hogs, Crude oil, RBOB gas, T-Bonds, Coffee
Tuesday - Silver, Eurocurrency, British pound, Australian dollar, Japanese yen, Swiss franc, Cocoa
Wednesday - Cattle
Thursday - Soybeans
Friday - Wheat, S&P, Dow Jones