I can't believe what I am seeing currently in the March Euro contract that could lead to a technical break out.
Will Greece get a debt extension? Do they deserve one? Can you get blood from a turnip? Well, no. There's a lot of uncertainty.
I have added my favorite technical indicators to the chart below. They are the 9- (red line), 20- (green line), and 50-day (black line) Simple Moving Averages (SMA). I have also added Bollinger Bands or BB's (the royal blue lines ) and Candlesticks (the red and green bars) with the candle stick wicks where on this daily chart each bar represents one day of trading. These few technical indicators can tell me as much as 8-10 different characteristics about the market at a quick glance.
The most exciting part of this chart is the Symmetrical Triangle (dark black lines) that I have added. They say typically, but not always, these formations go out the way they came in. Clearly the 6EH5 was in a downward trend when the "Sym-Tri" was formed. More importantly, I have found that whichever side of the "Sym-Tri" is breeched, the market could trend in that direction for a long period.
I figured this out by placing my technicals on a daily chart and applying these indicators to the chart at the click of a mouse which can be found here.
Daily March euro currency chart
Option play: Crude
I believe that we are looking at a market that will breach the "Sym-Tri" in a big way so a 3 to 1 strategy could be a great play in my view. Maybe the 6E will go sideways for some time because they can't make a quick decision in the eurozone and they kick the can. I have potential option plays for that type of movement as well. However, I believe a breakout will happen very soon.