Using Stop Loss Orders to Protect Yourself While Letting the Move Run Its Course (NASDAQ:EZPW)
Most traders and investors are familiar with stop loss orders but few actually use them in their trading. The reason is that stop losses are often viewed as a tough balancing act between keeping a tight stop to minimize losses and "smothering" the stock by having the stop so close as to be stopped out by any minor decline.
EUR USD reached the 1.3853 high, pips away from the minor resistance line of 1.3860. Intraday bias remains on the downside, as long as the 1.3860 minor resistance line is not broken. On the upside, if the 1.3860 minor resistance line is broken it will reverse the bearish sentiment to bullish momentum and target the 1.4280 major resistance line.
EUR USD is on a strong upside rebound and is pips away from breaking the 1.3860 minor resistance line. Intraday bias remains on the downside, as long as the 1.3860 minor resistance line is not broken. On the upside, if the 1.3860 minor resistance line is broken it will reverse the bearish sentiment to bullish momentum and target the 1.4280 major resistance line.
Gold, Silver Appear to Be Waiting for Euro to Breakout to Upside
The weaker U.S. Dollar overnight has put December Gold in a position to rally further following a strong surge overnight to $1362.00. Although the rally stopped short of the recent main top at $1366.00, upside momentum seems to be building. Traders appear to be waiting for the Euro to take out its last main top at 1.4028 before attempting to push this market through the resistance.
U.S. Equity Markets Rangebound, but Jobless Claims may Trigger Breakout
Today marks day 15 of the current rally in the U.S. equity markets and the action the past three days is suggesting that this rally may be running out of steam. The December E-mini S&P chart in particular seems to be indicating that we are still rangebound and that the markets are merely testing the upper boundary of the range.
December Gold is currently in a strong position, having broken out above a pair of downtrending angles from the $1270.60 to $1267.50 tops. These angles are at $1228.60 to $1230.50. The move also cleared a retracement zone at $1228.00 and $1215.00. Both of these prices are now new support levels.