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Silver lining (our pockets)
What a fun market we’ve been having lately. Many Safety in the Market students have been trading the breakout on silver and the subsequent move. If you missed Tim Walker’s recent Platinum article, Chart 1 below displays the action on Silver, which saw a breakout of multiple bar chart highs followed by an ABC long and an outside continuation entry leading into the 100% milestone.
If, like me, you missed the initial breakout, the market kindly provided an ABC long, which is currently at 100%. Being in profit and starting from a terrific Time by Degrees setup, we should now be happy to keep trading with the trend until this move ends. Chart 1: Silver with Recent Market Action
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No bank is an island?
In a recent Safety in the Market Platinum article, I wrote about a forecast for Westpac and, as I expected, the sideways period from late-August to early-September ended with a break-out to the downside. This briefly formed what could be considered a multi-day island reversal, although the gap was closed on 6 September before the fall continued. At present there is a weekly ABC long with the market appearing to be held up by support from 75% of the All-Time-High. Keep watching the weekly and monthly swing charts for an indication of further pullbacks or the beginning of another section up. Chart 2: Island Reversal on Westpac Bank
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Something sweet…?
Another market I am watching closely is Sugar (SB-SpotV in ProfitSource). This is showing a double bottom pattern with the lows sitting at 25% of the 2010 bull market range, as shown in Chart 3 below. This clusters with 150% of the 2010 low and I suggest you try to reproduce that resistance card yourself. Sugar is traded using futures contracts – currently the October contract - and the minimum movement of 0.01 is equal to U$11.20. Sugar can also be traded using CFDs but you would have to check the details with your broker. Chart 3: Sugar with Double Bottom Pattern
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On the October contract in ProfitSource (SB-2012.V), the September bottom was lower than the June low but we have seen a 100% repeat of the last weekly down swing – see Chart 4. W.D.Gann tells us the safest place to buy is the first higher swing bottom above a support level, so keep stalking this one and watch for a swing on the daily or weekly chart. Chart 4: October Contract on Sugar with Repeating Ranges
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This has been a brief summary of some of the markets I am watching. There is plenty to be trading at present and plenty of profits to be made too. Stick to your daily routine and be ready to take action as opportunities arise.
It’s the Journey
Lauren Jones
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