Wow.. the weekend is here.. felt like the week just blew past in the blink of an eye..
Alright lets get rolling.
We traded to these following levels today:
FKLI:
Opened at 1589 from last close of 1593
High: 1591.50
Low: 1586
Close: 1587.50
KLCI Index:
Opened at 1596.84 from last close of 1596.62
High: 1595.84
Low: 1591.85
Close: 1591.85
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Our trading levels posted this morning were:
KLCI
Upper Resistance: 1595, 1598, 1601
Lower Support: 1590, 1587, 1585, 1582
Cash Index:
Upper Resistance: 1600, 1602
Lower Support: 1594, 1592, 1589
With all the reasons we posted this morning, we expected today to be a choppy day and indeed it was. The cash index closed at our second level of support of 92 and our FKLI support levels of 87 and 85 held nicely. We also advised that you do not be caught buying the top and selling the bottom on a choppy day today coz if you did, you paid the price.
The way to trade a choppy day is to sell the top of the range and to buy the bottom of the range. However, due to one reason or another, I was not sharp enough to take advantage of this trading strategy today as I was feeling low on confidence due to a lack of proper rest. So no filled trades for me and my traders today.
So lets review the price action. We opened at 89 and briefly went up to trade at 91. There was a lot of resistance ahead from the price action of yesterday so we did not take a long here. Price then quickly fell to 87. This 87 was the low for throughout the whole morning and is also our second level of support. We touched 87 twice and traded up to about 88.5-89 for the most part of the morning. Nothing to trade here. Just traders liquidating their position coming into the weekend.
At lunch, we open a bit higher at 91 and traded to 91.50. This proved to be the high of the day. We parked a sell at 93, but we also knew that the chances of that being hit was very low but we did not want to take too much risk on such a choppy day. It was either get a good entry or no trade for us.
So price sank from there to a low of 86 which was just above our third level of 85. If you had sold the top of the range, you would have made some good money. But we did a few right things today tho, so let me just out line them here.
1) Identified correctly the support levels and the type of day it is.
2) Applied the right strategies to type of day.
So, no trades but its ok. The market is always here so we'll see how we can make some money next week!
Wishing everyone a great weekend!
Ciao!
Best Regards,
The Tech Trader
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