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Apex Trading: Weekly Trading Bulletin 12-16 October 2020 – UnumCapital
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Apex Trading: Weekly Trading Bulletin 12-16 October 2020

Apex Trading: Weekly Trading Bulletin 12-16 October 2020

Stimulus negotiations in the US are not going anywhere in a hurry, but global stocks continue pushing higher on hopes that a deal might be reached before the November 3rd elections. In a dramatic turn of events last week, President called off the stimulus negotiations, only for the same negotiations to resume later during the week.

Amidst all this uncertainty, we continue to trust technicals to guide us on where might be heading next. With 3 weeks to go before the critical elections, at ‘Apex Trading’ we continue to tread (and trade) cautiously as things may get messy and volatile. And below is how we are doing just that, as we head into the week.

#1. Gold (XAUUSD)

Interesting how the precious metal curved a falling wedge technical chart pattern, when it ‘corrected’ a few days ago. The decisive 1,910-1,920 resistance was broken last Friday, on what looks set to be a rally into all time highs. We are ‘Long’ Gold with a TP target of 2,300.

#2. S&P 500

Thanks to 3-23 September sell-off/correction, we got another chance to ride this nice uptrend when a technical flag formation broke out. ‘Long’ from 3,350, we have a TP target of 3,650.

#3. EURUSD

The pennant structure on the monthly chart remains intact, and as long as that holds we will hold our ‘Long’ position for our long term target 1.3.

Going down to lower timeframes, we see a technical bull flag formation that is pending a break higher on the daily chart. The short term measured target there is 1.25. But our trade is based on the monthly chart, so we will ride it to 1.30.

#4. AUDUSD

Another dollar weakness play, this one continues to playout nice. We have a medium-long term ‘Long’ target of 0.8

#5: DAX

The DAX is still on our watchlist, and we reckon 15,000 is on the cards in the medium term. But in the meantime, we sit tight as we wait for a confirmation to pull the trigger.

*Please note:

The above analysis and charts are based on Monday morning’s prices (12 October). We must also emphasis that these trade ideas are not exhaustive, and they are only our initial thoughts as we head into the week. You can therefore expect that some levels may be adjusted, to align with overall market sentiment. And also, new opportunities may arise during the week, which we may take advantage of.

To get our full thoughts and views on how we are trading this market, contact using email address innocent@unum.co.za; or phone number 0113842951.

Until next time, let’s keep it Profitable as we climb to the Apex!

Regards

Innocent Maponde

Portfolio Manager: Apex Trading

Innocent Maponde

Innocent graduated with a B. Com (Honours) Degree in Banking in 2011, and gained corporate banking experience for about 2 years. His passion for stock markets made him complete the SAIFM ‘JSE registered securities trader’ exam in 2015, before venturing into full time equity trading in 2016 when he joined Unum Capital on their Proprietary Trading desk specializing in CFDs. Innocent believes proper risk management and consistency in executing one’s trading plan, are key to achieving success in the trading business.

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