How are you all doing? I hope everyone is doing great and ready to go!
Alright lets get started.
The US market all closed positive with the Dow up 126 points and the S&P up 15 points. Europe also all closed positive.
In the S&P, we closed as a big green healthy bar last night. The high of the S&P is at 1334.50 and the 22ema is at 1336 which should provide some resistance in the coming few days. On the weekly chart, the 1336 level is also quite significant as the 22ema is there also. So we have a convergence of the 22ema in two different time frames. I think this will be quite a significant level to watch from here.
The Dow is currently trading at -26 at premarket trading.
--------
Alright lets move on to our local market.
FKLI
Cash Index
Wow.. what a rally yesterday. Honestly, I really expected the cash to go up and test the 60 level but I did not expect it to reach all the way to 65 yesterday.
I also actually expected FKLI to go up further and the max target I gave was 65-70 by the end of the week. I totally did not expect it to reach it in just one afternoon.
So, the big question now is what next? Well, good question.. With such a rally yesterday, I think many of the sellers had their balls castrated. But for those who went long and swung their long position totally got their pay off if they had the guts to hold up till now.
With the US market closing positive last night, I think today would not be a day to start a swing short, that's for sure. But would it be a good day to start a swing long? The answer for me is a no too. Maybe you could if the current conditions fit your trading strategy.
Honestly from the bottom of my heart, with the swing long almost reaching its climax, I would be more inclines to look for a swing short entry. But it is not today. I would look for price to go up a bit more, trade sideways for a few days, and look for a fresh close below some support levels. I will update again when I see the entry setting up.
As for today, I would just stick with scalping and taking profits off the table and not hold positions over night until price has settled down.
Trade your levels carefully.
Here are your trading levels:
FKLI
Upper Resistance: 1570, 1572, 1575, 1578, 1580
Lower Support: 1565, 1562, 1558, 1553
Cash Index
Upper Resistance: 1568, 1571, 1575, 1578
Lower Support: 1560, 1556, 1552, 1550
Trade safe!
Best Wishes,
Tech Trader
No comments:
Post a Comment