How was your Labour Day holiday? I hope everyone is well rested and ready to get into the thick of things!\
Alright let us start by looking at how the US market performed last night.
The Dow closed up 66 points or 0.50% to close at 13,279
The S&P500 closed up 8 points or 0.57% to close at 1,406
The Nasdaq closed up 4 points or 0.13% to close at 3,059The S&P500 closed up 8 points or 0.57% to close at 1,406
S&P: On Monday night, we gave back a little during cash hours trading. However, last night after the numbers announcement at 10pm, price spiked all the way to break the premarket range to reach as high as 1411.75 by 12am. 1410 was a resistance point for us which held nicely. Price has pulled back from there and its now trading at 1401.75, up 1 point from last close as of 8.13am. This pullback look about half of the gains from last night and is just resting on the 1400 support since breaking out of the flag pattern.
This is still quite a bullish indication and hopefully it will help to slow down the decline in our home front and maybe bounce a little to go back up to test the 20ema. Take note that we have economic report again in the US.
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FKLI Daily chart
Alright.. With the US market breaking up from the flag pattern and closing up a bit despite giving back half of the gains, I hope that our local market will halt the decline or have a small bounce here to go back up to test the 20ema.
With the economic report in tonight, I expect for a range trading session with smaller range than on Monday. I will look for price to go back up to test the 20ema in the coming days so I will see if I have an opportunity to scalp upwards.
Price could get choppy down here though so you need to be watchful of that. If price does not go up enough to test the 20ema, eventually, the 20ema will have to come down instead, which will fulfill our criteria of price and 20ema meeting meeting up again.
Since I expect today to be range trading, I would avoid buying the top and selling the bottom of the range unless I'm trading for a breakout. If trading for a breakout, the criteria for breakout would be to make sure that there will be sufficient strength to push price all the way to your profit targets. I would also look for areas where I can fade the extremes for a small scalp. Take your profits quickly as price could get choppy for the rest of the week.
Here are the trading levels for today:
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
Trade safe and make some money! I'll update again if there are anything urgent! Ciao!
Best Wishes,
Tech Trader
P/s: I'll be back to correct the typos if there are any later.. market opening soon. See yah!
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