Fed announced last week its stance on the interest rate policy - Powell expressed a very hawkish viewpoint (Fed will keep raising interest rates).
As a result S&P 500 sharply fell together with $BTC and other assets.
If you read my last week’s newsletter I was hoping to look for some short term long positions on $BTC from a TA perspective.
However, I didn’t open anything on the 4H+ time frame as I wanted to get the Jackson Hole Symposium out of the way.
And my patience and caution paid off as the markets fell. The risk of high volatility was way too high for me to take any action.
I managed, however, to open two trades on a 15 min chart. Read below my take at the technical analysis.
Before we jump into TA take a look at a thread from last week I found interesting. 👇
DXY
DXY is still sitting at the resistance level. It’s hard to imagine the Dollar could reach highs of the ‘02 (the gray box) but it’s not out of the question.
Right now I would want to see a simple break of the resistance and a re-test. I could look for a long then.
S&P 500
S&P is playing out nicely from a TA perspective.
It went into the 0.5 to 0.618 fib levels. Found resistance at the 200 MA. Broke through support and re-tested it before continuing down.
Seems like a TA from a text book.
$BTC
It broke below the trend line. I would like to see the price dropping down to the support area before thinking of taking any trades on the daily time frame.
On the 15 min chart this range seems interesting. This trade in particular was a nice one, however, I missed it.
I’ll monitor the price action when it moves towards the bottom of the range and I just might take a long there.
My two trades from last week I took on a 15 min chart. 1 win and 1 loss.
Since my winners are larger than my losers it’s a net profit.
We are still living in the fear territory and it’s understandable. But it’s important to keep a clear head and don’t risk any money you can’t afford to lose.
This is not, in any way, financial advice and should never be considered as such. I will not be held accountable for any trading decisions that you or others make.