Having looked at all the markets this morning, no real trade opportunities jumped out at me. However I ended up taking two trades just to kick things off, in hindsight this was probably not the best idea as it is rarely wise to force a trade. But in the interest of kicking off this account the two trades I took was as follows:
Trade 1: ALSI long @51816 with a stop-loss @51440 (Open)
In keeping with the 2% risk profile I took 0.3 contracts giving me a total risk of 376 x 0.3 = 112.8 (ZAR). Technical reason for taking the trade is the potential breakout of the symmetrical wedge visible on the Daily, with a positive close outside the wedge on the 4Hr. We are also in an uptrend being above the Ichimoku cloud both on the Daily as well as 4Hr. I am also seeing hidden bullish divergence on the 1Hr for both RSI and MFI. If the breakout confirms we will have a technical target at around 52850. This equates to a potential profit of 1034pts giving us a Risk:Reward of 1:2.75. Risks to the trade is that we have a Gap close of Daily @51734 with a potential Gap down tomorrow. Trade 2: Brent Cruse short @71.59 with a stop-loss @72.50 (Closed)
I saw a potential opportunity to short Brent Crude on the close of a very bearish 4Hr candle. Having clearly rejected the 100EMA on Daily and also a key 4Hr level, I decided to take a short trade hoping to catch a ride on the current downtrend expecting it to continue lower towards the 200MA on Daily (around 70), which also coincides with a major level of support. This would have given us a risk:reward of 1:1.75. Unfortunately almost immediately after entering the trade, price immediately rebounded back to the open of the 4Hr candle stopping us out. Although unfortunate we accept the loss and move on to the next trade. I will continue to keep an eye on Brent as I suspect the down trend is likely to continue. Loss with some slippage amounted to 2.38%.