EURGBP Inside Bar At Support, Tesla Short Trade in Massive Profit | Jun 22
EURGBP – Selling Off Ahead of Brexit & Inside Bar At Support (daily chart)
In late May, when the Brexit camp started to gain real momentum and the lead vs. the Remain camp, the EURGBP started to climb. This was a likely combination of a) GBPUSD losing ground, but also b) traders hedging against a brexit by being long EURGBP.
This is because while Europe would lose out in a Brexit vote, the UK/GBP would do worse, which means the EURGBP would climb. This played out with the pair gaining almost 500 pips in the last three weeks.
A pin bar and massive selling emerged just before 8000 when the Remain camp gained heavily after the tragic death of the british MP (Jo Cox).
Since then, the pair has been bearish as the Remain camp has regained strength with today the pair forming an inside bar at support. The vote is tomorrow, but a break of this key support at 7660 will put 7572 into context (4 month lows). A break here then challenges 75 with the potential for a move towards 7350.
However in the scenario a ‘Brexit’ vote wins the day, then we’ll likely see an attack on 8000 in short order.
Expect massive volatility either way.
Tesla (TSLA) – Short Trade in Heavy Profit, Key Support Ahead (1hr chart)
Two weeks ago, I shorted $TSLA at 240, which I’ve recently tweeted an update about as well. The current sell off is about an 18% move in the stock with the most recent gap lower adding a fair amount.
My current short trade at 240 is in heavy profit now and I’ll be locking in profit shortly (see below).
Looking at the chart below, notice how if you waited for a confirmation price action signal, you would have completely missed a perfectly good trade.
For now I’m remaining bearish MT while below 240 on a daily closing basis, and ST below 214 on a daily closing basis. Traders can watch for a move up on strength to look for re-shorts.
Downside we have a multi-year range support around 180. Below here is the 3 year spike low around 150, which is my current target.
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