Pascal
02-04-2015, 05:28 AM
XME is an interesting ETF. It has bounced for the past three days and is now above its envelope. We can see that past 3 days bounces offered a weak continuation before a breakdown.
28266
We can see that the trend is clearly down. It might start to turn here, but we will only know it later. As of now, the test of a short trade at the close of yesterday shows a good R/R ratio.
28268
The sensitivity analysis also looks positive
28269
The above stats only measure the data related to a continuation of the downtrend. We however still should consider the possibility that this reversal will continue.
This is what the Materials sector MF is probably telling us. As of now, I would not short XME, but would probably buy pullbacks if the MF is still above the 0 level. However, as soon as the MF crosses back below 0, I would test a short trade using the breakout calculator.
28267
The above analysis tells that it is important to use different type of tools in order to have a good understanding of the dynamic behind an instrument.
28266
We can see that the trend is clearly down. It might start to turn here, but we will only know it later. As of now, the test of a short trade at the close of yesterday shows a good R/R ratio.
28268
The sensitivity analysis also looks positive
28269
The above stats only measure the data related to a continuation of the downtrend. We however still should consider the possibility that this reversal will continue.
This is what the Materials sector MF is probably telling us. As of now, I would not short XME, but would probably buy pullbacks if the MF is still above the 0 level. However, as soon as the MF crosses back below 0, I would test a short trade using the breakout calculator.
28267
The above analysis tells that it is important to use different type of tools in order to have a good understanding of the dynamic behind an instrument.