I've talked about diagonal triangles before, and there has rarely been a better example than is now visible in XAG (silver). There was a fast drop again today, with a tap to a slight new low, which touched the support-line created by numerous decending lows on the chart. According to practical technical analysis, when the downsloping resistance line (upper line) is breached to the upside, the next impulse move should be under way. Due to the fortuitous drop in silver today, I bought 100 units of XAG @ 9.50. I have a stop placed at $7.50. ($200 risk) I have little concern of that stop being touched.
The week's remaining FirstStrike trades:
- Gbp/Jpy: Long @ 171.74, stop 169.94.
- Gbp/Usd: Long @ 1.7119, stop 1.6999.
Current trade equity is: $1,208.21.
Silver position equity: $38.00
(Current XAG price: $9.89 – 100 unit position average: 9.50)
TOTAL Equity: $1,246.21
Have a good morning.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
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