How are you all doing? Alright lets get started.
We traded to the following levels today:
FKLI April Contract
Opened 1585.00 from 1586.00 the previous trading day
High 1593.50
Low 1585.00
Close 1590.50
What a day we had.
Here is the Daily Chart.
Alright.. first, some of the trend lines which are not connected is because it is meant for the weekly time frame. So just ignore it lah.
Today after Bernanke's speech in the morning, we expected today to have better ranges for trading and for support to hold somewhat but still trade below the trend line which we were right for all three.
Our levels for today was:
Upper resistance: 1594 and 1591
Lower Support: 1585, 1582, 1578, 1574
Here is the 30mins chart:
**Apologies for poorly drawn paint job.
So we opened today at our first level of support and never went below it for the rest of the day. After price opened, we had a great rally right up to test our first level of support where it broke it and touch a high of 92.5. A good trade here would have been a buy stop just above yesterday's small and choppy range, but I did not take this trade so missed a good long trade.
After price touch the high of 92.5, it pulled back to the 89.5-91 range. I then pulled out the 4 hourly chart and drew a trend line across the top and saw they there was a spike above the upper trend line. So with a spike above the trend line and the lower major bottom trend line of the larger daily pattern above at 94 as major resistance ahead, I placed a limit order to sell at 91.5. Also, at that time, there was more sellers at the levels up ahead compared to buyers and Cash index was trading at my first level of resistance of 97.
So price traded up from the 89-91 range and went up to 92 which took the short entry order. Price did not immediately broke down after that.. we traded in the 90-91 range for a period of time before the buyers caved in and the sellers took the upper hand. We broke down in quick succession and the position closed with a nice scalp at 88.50. Also take note that we had some local economic data being released today too which made me unwilling to hold the position. Price eventually went as low as 87 before lunch.
We opened higher during lunch and traded in the 88-91 range for an hour and a half before breaking up to a new high of 93.5 which was just below our second level of resistance of 94 and traded within the upper range for a while before closing at 90.50.
So.. yeah.. that's about it for today.. tomorrow is a public holiday so no trading.. We will open with major economic reports in the US on Thursday and Friday so we will plan how to trade then.. looks like its gonna be choppy and range trading perhaps? We'll see..
So wishing everyone a great public holiday and long live the king~ hehehe *corny ehh?* hahaha..
Best Wishes,
Tech Trader
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