Thursday 3 May 2012

Morning Updates - 3rd May 2012

Morning Traders,

Alright lets get going.

Let us look at how the US market performed last night.


The Dow closed down 11 points or -0.08% to close at 13,269
The S&P500 closed down 4 points or -0.25% to close at 1,402
The Nasdaq closed up 9 points or 0.31% to close at 3,060

Alright the US market closed largely unchanged and mixed. At one point we were down more after the numbers but recovered after that. We are currently trading at 1397.25 down 0.25 points only, just below the 1400 resistance. We will have Non-Farm Employment change number tonight which can be a market mover. We have been trading within a range this week and the upside breakout on Tuesday had pulled back into the range too. We will see how the market will react to the numbers to be released in the coming days.

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Let us move on to our local market.

FKLI Daily Chart


Alright. We are now trading at the 20ema. This area would act as a resistance area and a deciding point in the coming days. Should we break above and remained closed above the 20ema, then there is a chance for the trend to change and we might go back up to test the resistance above. Or the 20ema will hold and we will chop around this area and continue the second leg down since breaking down from the 20ema last week.

With the Cash Index performing so strongly yesterday, our futures also closed at a premium. The Cash Index is still trading below the 20ema so it might want to go back up to test the 20ema too at around 85. So I think we should follow the lead of the Cash Index for the next leg of the move. With the Non-Farm Payroll Numbers tonight, I think there is a possibility for a range trading session today. But watch out also for possible breakout like yesterday. This is the market and we should be prepared for all possible outcomes.

If you are looking to fade the extremes in a range trading session, make sure that the market has shown a prior tendencies to go into your direction by a break of a trend line first. That way, your scalp would have a high probability of working.

Here are the trading levels for today:

FKLI

Upper Resistance: 1585, 1588, 1591
Lower Support: 1580, 1578, 1575

Cash Index

Upper Resistance: 1585, 1587, 1590
Lower Support: 1580, 1576, 1573

Trade safe and watch your levels carefully. If you are looking to buy, make sure support is holding and if selling, make sure that resistance is holding nicely.

I'll update if there are anything urgent on the news. Ciao!


Best Wishes,
Tech Trader

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