Watching Wednesday & Thursday trading

Certain price activity this afternoon is becoming interesting, at least to me.

The bias is for lower prices and in some cases a re-test of recent lows, although probability of lower lows is increasing.

Brent and WTI Crude is pennies from breaking below a support line I’m watching. Gasoline prices are currently being smacked and Hot Rolled Coil Steel was slapped overnight.

Inversely, the AUDUSD is having a 2nd and 3rd attempt of butting its head up against a 0.7520 resistance, though it may be losing steam.

Iron Ore had a bearish reversal day, other Iron Ore related stocks had terrible price action (and are poised at important levels), Coal prices look dubious and the U.S. 10 year bond yields look like moving below its current 1.61%….to mention several.

You may want to sell your Bitcoin.

If a bunch of prices hold, it could be a ‘buy on the dip’, however I shan’t be heroic at this stage. I’ll need to wait and trust my signals.

One of my favourite risk on/off indicators (AUDJPY) needs to stay above 85.12 to foil this ‘lower prices’ call and Copper needs to stay above US$4.38.

Let’s see what we wake up to on Thursday morning.

And the work is (will be) to position for what the effects will be and the opportunities to be ready for.

My next couple posts will have some price charts and a bunch of lines strewn across them.

October 27, 2021

by Rob Zdravevski

rob@karriasset.com.au