Looking for setups to trade in the next couple of days?
This week we’re talking trend continuation or reversals for ETH/USD, EUR/NZD, and Morgan Stanley (MS).
Check out their daily or weekly charts!
Morgan Stanley (MS): Daily
Investment bank Morgan Stanley (MS) had a good 2021, rising from 2020’s consolidation near $46.00 all the way to 2021’s highs at $105.00.Have the bulls run out of steam? Take note that MS has been in a $10-range since Q4 2021.
Price is fast approaching the $94.00 zone that lines up with the range support and the daily chart’s 200 SMA.
Consolidation or bounce from the range support would hint that the bulls still have some firepower yet.
Watch the moving averages, though, as signs of the 100 SMA closing its gap or even crossing below the 200 SMA could fuel a downside breakout and a longer-term reversal.
Worried about Ethereum’s (ETH) downtrend since November 2021?
Well, HODLers will be happy to note that ETH/USD has popped up a green candlestick around the $3,000 support a week after a selloff stopped at the same support level.
If the green candlestick leads to more buying, then I’ll be watching the $4,000 to see whether ETH/USD is ready to retest 2021’s highs or if it’s just completing a Head and Shoulders pattern on the weekly time frame.
A bounce lower from $4,000 could lead to a retest of the pattern’s “neckline” near $3,100.
If the bulls bust through the $4,000 handle, though, then you should also prepare for a possible trip back to the $4,800 highs.
Here’s one for trend traders out there!
EUR/NZD is consolidating near the 1.6800 area that bulls and bears have been reacting to since mid-2019.This time around, 1.6800 also lines up with a trend line resistance that’s been solid since mid-2020 AND the 61.8% Fibonacci retracement of the last downswing.
The cherry on top of the sweet setup is a bearish divergence on the weekly time frame.
Will EUR/NZD extend the downtrend that started in 2020? Or are bulls and bears ready for a wide consolidation if not a longer-term reversal?
Watch how EUR/NZD reacts to the trend line resistance and see if bullish or bearish move gains momentum!