Lets get rolling!
We will start by looking at how the US performed last night.
The Dow closed up 181 points or 1.41% to close at 12,987
The S&P500 closed up 19 points or 1.38% to close at 1,388
The Nasdaq closed up 39 points or 1.30% to close at 3,056The S&P500 closed up 19 points or 1.38% to close at 1,388
Wow.. What another strong performance in the US last night. We are now trading back at near the bottom trend channel line in the weeklies! Imagine that! Just barely 2 days ago we were trading 30 points lower in the S&P!
The buyers are clearly in control in the market at this moment. I would believe that short coverings helped push this up faster as well. We are forming sort of a hammer candle on the weekly chart which is always a good sign if you are buying. Now the question that needs answering is, will we be able to push back up into the upward channel pattern? As of now, we are just trading right at the door step of it. I believe after tonight's numbers and Bernanke's speech we will find out. Also, today is a Friday so this combination will make me want to look out for possibilities of a choppy session.
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FKLI
So whats in store for us?
Well well well.. coincidence or not, our chart pattern also looks like it is knocking at the lower bottom trend line's door, but it is in our daily chart lah.. :)
Also, in our weekly chart, we are currently trading back into the upward wedge pattern and is currently a green bar with a long tail. Should today closed strongly too, we will have a nicely formed hammer pattern.
So.. What's in store for us today hmm? With the US closing so strongly along with the other regional markets too, I would be inclined to say that the pullback swing is over.. that the pullback has done its job and it is now time to return to the upward march! However, sometimes things are not as simple as things may change next week as new news comes in.
But as for today, I would be in favor of a range trading to a slightly upward biased day to test the upper resistance and the bottom support to hold. But in any case, we will let price action guide us as we are testing the lower bottom trend line also.
Here are the levels for FKLI today:
Upper Resistance: 1595, 1598 and 1604
Lower Resistance: 1590, 1588, and 1586
So trade safe all. Lets make some money.
Best Wishes,
Tech Trader
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