Trade in the Zone - 29th May 2022

Welcome back to Trade in the Zone, the Weekly newsletter from Key Zone Traders, providing?our members with insights into the markets for the upcoming week, and adding more value to your trading.

If you like these newsletters, please make sure you sign up for?our?premium version of Trade in the Zone?- which you can receive for just?￡10/per month.?This?is packed with more market analysis and?content, adding even more value to our subscriber's trading.

Our Market in Spotlight in last weeks edition we looked at the EURUSD and how it had held key support at 1.03400-1.04100.

This week has seen price break above the 1.06400-1.07100 zone and hold it on a retest, which means we can shift our bias to longs on the short term time frames, whilst we stay above this zone?

Crypto Watch

Bitcoin continues to consolidate below the 29600-31420 zone on the Daily Chart, with price seeming to be?accepting below here now, which continues to favour the bears.

Any impulsive moves to the upside and through 29600-31420, and we would still look for short reversals from the 34150-35450 and 37610-38910 zones.

If we do start to see further impulsive moves to the downside then we can look to target the 18240-19890 zone but should be aware and manage any positions if we see a potential liquidity grab below Mays current low of 25338.

Come and check out the?Key Zone Traders Academy, where we provide you with the necessary tools and teach you how to build the skill sets to identify these movements yourself.

Market in Spotlight

Back to the S&P 500 this week, and it was a big week for the index and the first real signs of positive sentiment for a while.

After 7 consecutive weeks of losses, the SPX finally posted some strong gains on the Weekly Close.

On the Weekly this has meant it has set up a reversal and?a close above the?4100-4150?zone, also showing a false break signal of the?3925-3975?support zone.

This does not mean the SPX is out of the bearish clutches just yet, as we still have the?4260-4315?zone which can act as resistance, and we have the dynamic resistance of the Weekly moving averages here. I would expect some form of reaction from here, even if it is a weak one on the lower time frames.

If that reaction is impulsive to the downside, and we start seeing acceptance back below the lower zones, then this would continue the bearish tone on the index.

However, if the S&P can take its strength forward and breakthrough that?4260-4315?resistance, we even potentially have a continuation on the Monthly charts to the upside, which can see movements back towards?4580-4640, and possibly even another assault on new All-Time Highs.?

If you wish to receive Daily Updates on the S&P 500 and where we think it is heading on the lower time frames, check out our?US Key Zone Service?- completely Free of charge

The Week Ahead

A very short, 3-day week?here in the UK due to the Queens Jubilee, and there will be no real high-impact news until later in the week.

We have the CAD rate announcement at 3pm on Wednesday, which we will need to be wary of. And if we are holding positions past Wednesday, then it will be important to manage any risk ahead of the ADP on Thursday at 13.15pm and Non-Farm Payrolls on Friday at 13.30pm

Question?of the Week...

What should I do with my profits?

First of all - celebrate! If you are making money consistently in the markets, you have mastered trading and this is no small feat - and should definitely be celebrated.

When you first start making profits from trading, it is important to reward yourself, even in a small way by taking yourself and your family out for a nice meal, or treating you all to your favourite takeaway.

However, once you start making money consistently - you have to make the most sensible decision based on your circumstances.

My first instance is to advise you to compound your account. This is the idea of using your profits to increase leverage and therefore returns over a longer period. If you can do this, this can have a significant impact on how quickly you can achieve your upside targets.

Take out what is necessary and then leave the rest to work for you.

If your account size is already at a point where it can provide you with the returns you desire, then you need to detail how you will pay yourself as part of your plan. This means how you will also pay yourself, when you do not make as much money on a particular month - without it affecting your ability to trade and make the same returns.

Speaking to a Financial Advisor would also be a sensible thing when you reach this milestone.

What's Coming Up For Key Zone Traders...

Unfortunately due to illness last week, our schedule did not quite go according to plan - so there may be some duplication from last weeks schedule on this weeks calendar

Monday?-?Check out the latest testimonial from a happy customer

Wednesday?- We talk about how important spreads and commissions are to your trading in our latest Blog

Sunday?- We will show you our Trade of the Week - the trade that we take in the markets which we can take the most information from.

Dont forget to check us out?on our?Instagram channel?for more news and latest tips this week

Hope you have enjoyed this?edition of Trade in the Zone with Key Zone Traders.....have a great week, and lets go?Make. It. Happen.