Thursday, September 1, 2011

New Trade - EUO

Click on Chart to Enlarge

The US Dollar has jumped this morning and broken the trendline of a downward sloping wedge/triangle. It actually gapped up up above the trendline which is really nice for the beginning of a new trend.

Given everything discussed on this blog about gold, silver, commodities, and the US Dollar, I am going to post a new trade entry here on this. Notice that the +DI has crossed above the -DI and the daily MACD has made a bullish cross this morning. I like this combination of indicators, and an indicator exit can be made when BOTH the MACD makes a bearish cross above the 0 line AND the -DI crosses above the +DI. At that point a trailing chart based stop could be initiated as well rather than immediate exit.

Buy EUO today with a market order. Place a GTC sell stop at 16.45. Blog entry is 17.17.

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