Lets proceed with today's summary.
We traded to these following levels today:
FKLI
Opened: 1576.50 from 1576.50 last close
High: 1577.00
Low: 1573.00
Close: 1574.50
Cash Index
Opened: 1580.33 from 1579.35 last close
High: 1583.08
Low: 1577.71
Close: 1579.69
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Our trading levels for today was:
FKLI
Upper Resistance: 1580, 1583, 1585. 1588
Lower Support: 1578, 1575, 1572, 1569
Cash Index:
Upper Resistance: 1583, 1587, 1585
Lower Support: 1580, 1576, 1574, 1571
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Today the Cash Index traded pretty much within our levels. Price could not break our first level of resistance of 83 and touched a high of 83.08. Price first tested the first level of support of 80 and that too held nicely. It finally broke and went down to test our second level of support at 76 but never went that far and only tested the 77.71 level.
The April futures contract never gaped up today and opened the same as yesterday's close. the high of the day was 77 which was below the first level of support. Always remember that when price is trading below a support, that support automatically turns into resistance in technical analysis. It is the same for all market traded.
Price was very choppy to say the least. We expected today to be range trading and advice for traders not to be caught buying the top and selling the bottom which was the right strategy.
We did park an order to buy at 71.50 today, but never got filled, which was ok. What we were trying to do was, buy the bottom of the range, and sell the top of the range, which is the right strategy to apply during range trading session.
In the afternoon, on one of my trader's account, we tried to scalp the FCPO instead and for the second time running, was not successful at it. Day trading the FCPO definitely many times harder than day trading the FKLI. Do you all agree? Trading the FCPO will have a higher probability of success in swing trading.
The FKLI may not be an exciting contract like the FCPO, and the ranges may be small, but money can still be made. Maybe not big money, but smaller and safer, which is my preference.
However, if you manage to catch a nice swing of the FKLI futures, that's where you can see the big money in trading the FKLI. I am still in search of a short swing position in the FKLI. Hopefully we will have a bounce back near the 20ema, and then we will see what we can do from there.
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Tomorrow is Friday, and we have some report as well. We will see how the US market perform tonight and post the trading levels for tomorrow before the market open.
Good night all, catch ya'll tomorrow morning!
Best Wishes,
Tech Trader
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