XJO 22 July 2011 - Trade Chart, Bar by Bar

With the strong positive lead from the DJI (Dow Jones) the market took off in the morning. I was able to catch most of it during the night session. So at the Australian open even though the XJO starts charting at 10am the Aussie cash Index at MF Global has already reached the morning high from the night before. It takes about 20mins or less for the two to match up.

In any case I watched and waited for a trade to unfold...........

At 11.50am I entered a potential bounce of the 50moving average @ 4597 and waited to see if it would stick. It bounced again against the 50ma and then broke out of the small consolidation area to test the previous high. I sold my first lot at 4602 and held the rest to see if it would keep going. It did and moved to the 4612, I probably could have taken profits there but held, as my price target was at 4619. I could see on the 15min chart resistance yet I felt it would break to the upside.

As time went on it did very little but go sideways and starting to sag, so my stop was placed tight and I let the market do its thing, either move up and hit my price target or stop me out. It stopped me out at 4607: 10 points.