Apologies for the late summary today.
Alright lets proceed with today's summary.
We traded to these following levels today:
FKLI
Opened: 1568.50
High: 1584
Low: 1565
Closed: 1583.50
Cash Index
Opened: 1572.46
High: 1582.39
Low: 1572.47
Closed: 1582.39
Our levels for today was:
FKLI:
Upper Resistance: 1569, 1572, 1575, 1578
Lower Support: 1565, 1562, 1558, 1555
Cash Index:
Upper Resistance: 1571, 1573, 1576, 1580
Lower Support: 1567, 1563, 1558, 1553
Wow.. we expected price to come back to test the 20ema in the coming days.. I just couldn't guess that it would be done in 1 day!
We started the morning great as we went long at 67 but I took off the position at 69. Too conservative huh? Usually on a day like today, a Wednesday, with reports coming out at night, we would just be range trading.. nothing more than 10 points max. But today was exceptional.
Congratulations to traders who took the break out trades. I wished I just trailed my stop to 67.50 and ride the whole thing but I didn't, but its ok. The market will still be here so plenty of trades to make still.
So we are back right smack at the 20ema now. The day we have been talking about is finally here. What's next? Well, 3 things can happen. 1) We consolidate and chop around this 20ema for a period of time before deciding which direction to go in the coming weeks. 2) we close above the 20ema conclusively with high volume, indicating that the down trend is over and 3) we will test this 20ema, can't break over it conclusively, and we continue the down swing again.
We currently have some short position now established towards the end of the day so we will see how we can manage it. Should price close back above the 20ema, then we will close the position and look for the next swing.
I will see how the US market close tonight and I will post the levels again tomorrow.
See you tomorrow morning!
Best Wishes,
Tech Trader
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