How is everyone doing? Alright lets get started for the last trading for the week!
First we will look at how the US market closed:
The Dow closed up 114 points or 0.87% to close at 13,205
The S&P500 closed up 9 points or 0.67% to close at 1,400
The Nasdaq closed up up 21 points or 0.69% to close at 3,051The S&P500 closed up 9 points or 0.67% to close at 1,400
S&P: Alright. The US market reacted positively to the numbers and positive company earnings and closed up for another day. We broke upside out of the Flag Pattern of the last two week's consolidation and hit the 1400 and closed there. We are now trading at 1391.50 down 5.25 points as of 8.12 am which is just outside of the flag pattern of 90. Tonight we have another round of numbers so we will factor that in for trading our local market today.
Lets look what is in store for us.
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FKLI Daily Chart
Well well well.. this week just went past in the blink of an eye, didn't it? Alright we traded to a small bar yesterday in a tight range. I wonder if today will be the same as it is a Friday?
Usually after a big and violent move, price tends to pause for a while just like now to pause and gather some energy before deciding to break out from this pause. I would like for price to bounce back higher so that I can swing a short from there. But of coz, the market does not act according to my wish and wants. That is why we will trade by following its price action and look for a set up to enter a trade.
Since it is a Friday, I am in favor of a range trading still as we will have economic report tonight again. Avoid buying the top and selling the bottom of the range like yesterday unless you are targeting to trade a breakout. As we traded to a small range in the past two days, you might want to look for an opportunity to trade a break out. It might, or might not break today, but you just want to be on the alert in case it does so that you can take advantage of it. I'm more in favor of a selling the top of the range and buying the bottom of the range trades. If you are planing to trade a breakout from the range, you do not want to be caught buying within the range so place your buy and sell stops just outside of the range area. If you are right and a breakout with strength occurs, then it will take your stop orders and take you into the trade too. Take your profits quickly as Friday's price action usually is quite choppy.
Here are the trading levels for today:
FKLI
Upper Resistance: 1578, 1580, 1583
Lower support: 1575, 1572, 1570
Cash Index:
Upper Resistance: 1583, 1585, 1587
Lower Support: 1580, 1576, 1573
Trade safe and make some dough! Ciao!
Best Wishes,
Tech Trader
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