Rate Of ReturnA large number of assets have reached the resistance zone! The next trading opportunity is here. Logic Investment Market Review 240519
Key points of this article:
𝒪 Shared many views in the DC group this week, the market has not shown any significant turning points.
𝒪 A large number of trading instruments have risen to resistance levels this week, but no clear resistance patterns have formed yet, making it unsuitable to go long or short.
𝒪 The next fastest trading opportunity will likely be US Treasury bonds.
◉ Asian Markets—Hang Seng Index continues to rise, Nikkei consolidates upwards.
The Hang Seng Index continued to rise this week, maintaining our view of "bullish but not entering long positions."
After the downtrend from March to April, the Nikkei Index has been accumulating buying pressure and has now formed an ascending triangle.
We are observing two buying opportunities: one when the futures pull back to 38,020, and another when the futures break through 38,900 and retest the 38,900 level.
◉ US Markets—Strong Breakout
Nasdaq and S&P futures accelerated their rise this week, successfully breaking previous highs.
Given that this is a continuous rise rather than a breakout after accumulating buying pressure, we are also adopting a "bullish but not entering long positions" approach.
On the other hand, Russell futures and US Treasury bonds have shown breakout-and-pullback entry patterns, with key levels to watch at 2,093 and 109, respectively.
◉ EUR/USD—Facing Resistance Again
The USD/EUR maintains an upward trend but has now reached resistance.
We would consider going long if it retraces to 1.08.
◉ USD/JPY—Pressured by Resistance
Last week, we mentioned that 156 was a former support-turned-resistance level, and this week, it peaked and pulled back.
However, the pullback was shallow, and the pair has rebounded, potentially forming an ascending triangle. We would consider going long.
◉ Cryptocurrencies—Rising to Resistance
Last week, we mentioned that two cryptocurrencies showed bottoming patterns, and their prices subsequently rebounded.
Bitcoin has now reached its top, and we expect resistance to emerge.
◉ Gold—Breaking Recent Consolidation
This week, we shared a trade on gold in our column.
On Tuesday, we identified a clear entry pattern at the former resistance-turned-support level of 2,330. We successfully added positions and exited at 2,385, achieving a 7.8% return on total capital over two days.
Although gold is still rising, the risk-reward ratio has worsened, so we are no longer considering long positions.
◉ Crude Oil—Double Bottom
Last week, we mentioned that crude oil showed a bottoming pattern. Although it broke below the head-and-shoulders bottom this week, it has formed a double bottom, making long positions more favorable.
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