Market Update 11/06/2021, Price Run Breakout
Hello traders. Welcome to another episode of Market Update. This is for the week of the 11th of June 2021, and today we’re going to talk about what defines a breakout. What defines a breakout? In my last session, we talked about what establishes a breakout. Today we’re going to talk about what defines a breakout. If you guys haven’t already, check out the video from last week. From June 4 that does talks about phases in a trend that’s a good primer before we dive into this session about defining a breakout. So in my last session, we talked about what established a breakout. Meaning, what are we looking for, which allows us to see that a trend is continuing in the same direction that it is already going. Today we’re going to talk about when does a trend, reverses what defines a new trend. So let’s take a look at an example. So let’s say we have an uptrend, an uptrend. We have confirmed swing low here. And then let’s say we have.
So, another swing high there swings low there. And we are in this uptrend. And here, what are we looking for to see if the market is going to continue in this trend or going to define a new trend, which would then be a downtrend. What we’re looking for is for the market then to reverse and take out. At least the previous low. And what we’re looking for is where to take out the previous two lows. And we’re going to then have this swing low. And let’s say it goes up, but it does not break this previous swing high, And you have a new lower high. In this sequence, we see that a new downtrend has been confirmed. Now, the market can go many different ways from here, it can go back up again for an uptrend, it can go down again.
But right now, where the market is. This has defined a new trend, and that is now a top to bottom, whereas before it was a bottom to top. So, this is what we call a price, run breakout, a price run breakout. And that is one of the variations, one of the six variations that we teach you at master the markets in understanding what are the different kinds of breakouts and allow you to visualize this happening in the markets. So let’s take a look. Actually, don’t take my word for it. Let’s take a look at this happening in the market. So, this is on the daily chart, GBP USD, going back to last August. So as you can see we have a top to bottom move. So we have swing low swing high swing low. And this takes out the previous swing high, and it does not take this out yet, but potentially, depending on where the market goes here. We could be in an uptrend. Now what happens immediately after that, we have a new swing low confirmed that is above the previous swing low.
So what does that mean we are now on an uptrend, we have now defined this new trend. So that ladies and gentlemen is a price run breakout to the upside. So that’s it. Let’s switch over to the market update for this week. We’re going to start off with Euro USD. So in Euro USD this week. We have gone, we had gone long in our live trading room with our stop loss at 1.2143. And that would have taken us out actually, just today would have taken us out. Still, talked about a move now. With OEE to the downside. But we are now in a compression pace, the market so we would look out for. We would look out before we look to enter this long or short. That’s on the Euro USD. Next, we move to the dollar Swiss franc. We’re currently in a short position with the stop loss at point 9015 Just above the high from yesterday. So we’re going to continue to stay in this trade, short, as there’s still some way to the bottom. Next, let’s move on to GBP USD. As you guys can see, we are still in an uptrend, no top has been confirmed here. Relatively it’s in a compression or accumulation phase. So we’re going to wait until the market shows its cards before we decide to move in one way or another.
Let’s move to Dollar Yen, still in an uptrend. But no top has been confirmed here. And we’re coming up against this resistance level. From early April. So we’re going to see how we’re going to play this out, No entry for the dollar yet just yet. Let’s look at the Aussie dollar. We are in a position long at the moment. But if you look further back. There may not be much upside, there may not be much, we left this move.
But if we do break above this confirmed swing high, and especially about this one, we could look for a big blow to the upside. But that’s still to be confirmed in the Aussie dollar. Next, Euro Yen. We had a top at an all-time high confirmed late May. And we had a bottom confirmed here as well which we’re now approaching.
So this top has not been confirmed. So let’s see how this plays out. We could be looking to go short here if it breaks this swing low, with a lot of ollie to the bottom side.
Next, let’s move to oil. We are still long on this trade, that we had entered some time back, and we are trailing the stock market is performing very well, this is probably one of our better trades.
It’s coming up to the highest when the pre-pandemic levels, so we could be hitting some resistance here. So we’re going to be watching this closely over the next few days. That’s on the oil. Next, we move to coffee. We have backed off all-time highs from late May, but it has not reversed quickly or strongly I should say I’m sorry. So, we are looking to see how the market reacts to this high again, if it continues to test that resistance level. But if it swings back, then we could be looking to go short here with a lot of Oh at the bottom side.
Next, gold, again, since the last few months we have been in a strong uptrend. A top was confirmed at, end of May. But no play yet. As we might be in an accumulation phase before the market decides, one way or another, which way it’s going to go. Silver, again a higher timeframe uptrend. But there’s not much of a win here. So again we’re going to be looking to see if what cards, the market will play for us to decide if we’re going to go long or short, as it’s an accumulation phase at the moment. Let’s move to the footsie still since end of March we are in an uptrend. Prices hitting a previous high from early May. So we’re going to look to see how it performs. When it hits that level again. And it’s going to be interesting to see how it performs next week. This is also hitting the pre-pandemic. With zoom out here. Pre pen pre-pandemic highs. So very interesting to see how the next few days. A few weeks ago for the footsy and actually very similar for the Dow as well, where there was a previous local high from early May, a swing low was confirmed. And we’re hitting that level against seeing the resistance here. So, we might be in an accumulation base before we push further up, or we might look to come down pick up more buyers. Before we continue the uptrend, or we could go further down, If it breaks this level, and pick up even further buyers down here so lots of intrigues, in the index markets in an actually any of the markets actually. So, very interesting times ahead for the summer. Let’s go ahead and move to the trading room’s performance for this week. For the live trading room. Not many entries. The primary runners 0% Liftoff 3.2% I’m sorry Liftoff 3.2 20% lv 0%, lift up 3.2 with 70% or 0% as well. Cash in 4.0 TSL primary 0% with the cash and 4.01-day exit had a negative 0.71% to the MTM elite trade room. We had no entries this week for the primary runners caching 4.0 strategies or the continuation pattern strategies. So overall this week, negative 0.71%. For the trading rooms, as we say here at master the markets we are in it for the long haul. So, no matter the ups and downs for each week, we know that the strategies are built to perform over the long term, so stick with us as we continue to do that and take advantage of any opportunities that may still present, present to us this summer. So that’s it for us for this week. Thank you all for tuning in. And we look forward to seeing you next week.