Tonight I will be out as I will be having dinner with friends so I figured I should finished this before I left the office..
So here goes!
We traded to the following levels today:
Open at 1595 from yesterdays close of 1594
High: 1597.00
Low: 1591.50
Close: 1593.00
Alright.. We actually opened up one point instead of a small gap down today. We opened at 95 and then briefly traded to 97. We were actually thinking if 97 was a good spot to go long but when we drew the trend line in the 30mins chart as per above, we found out that 97 was a resistance point. So we waited to see if price would break 97. If yes, we might consider the long, and if no, we will wait for a better entry. Price was not able to overcome the 97 level ans traded in a tight range of 95-97.
Then for those of you with enough guts, you could have traded the breakout of these ranges by placing a buy stop above and a sell stop below the ranges of 95-97. If you did, you would have had a nice scalp downwards as price broke the 95 level and headed straight down in quick succession to 91.50. I believe the speed it went down was due to stops being triggered as well which resulted in long selling.
But this was good for us because we parked an order to buy at 92, which was another trend line we drew in the 30mins chart.
Take note that our support for today was first 94, 92, 90 and 87. After price broke through 94, it immediately tested the second support at 92 which was where we parked our entry. Price in fact traded to a low of 91.50.
We stayed at that level and close for lunch right after that. After lunch opened, we traded up from these levels right into the 95.50 level. We took out profit at 95 which was good enough.
Price then traded at the range of 94-95.50 for a period of time. There were more sellers than buyers at these levels so it was quite a hill for the buyers to climb if they wanted price to trade higher. In the end, the sellers took control and push price back down and finally breaking back to test the 91.50 level before closing at 93.
Not a bad day. Tonight we will have economic report in the US and same for Friday night too with IMF meeting scheduled for Friday and Saturday.
Expect tomorrow to be much lighter volume and choppy day. We will look at how the price action of the US market tonight and post the levels again tomorrow.
Have a great evening all! Ciao!
Best Regards,
Tech Trader
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