Morning Traders,
Today is the last day of the trading week. The major markets will be having a 3 day weekend so you need to be on the look out for that. It is believed that shorter term traders would lighten some of their positions to avoid any surprises when trading resumes for them on Tuesday. How much this is true we don't know. However, you would not go wrong if you just follow price action and let the chart tell you instead of guessing it yourself.
Alright. The US market closed up last night with the exception of Nasdaq which closed down with 11 points. The Dow closed up 34 points and the S&P closed up 2 points. Now this is nothing to shout about to be honest, but at least, it is a relief for the longs who have been suffering up till now.
On the chart, we did closed as a green bar with a long tail, but we are now trading at some resistance level. On the S&P futures, price need to break up and close above the 30s level convincingly to make me believe this bounce is strong. Otherwise, this could be just a pause before we drop further in the coming weeks. As for now, price looks like it is trading sideways just like in our local market.
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Okies... on the FKLI yesterday we closed back above the 200ema. Looks like more sideways action for me until we have any conclusive break out from this range. The cash market had closing above the 200ema for the past four days though.
Since we have a fresh close above the 200ema, if you are looking to long, price need to open at or preferably, higher than yesterday's close. This would give us confirmation that the trend is still strong. But I'm looking at the 48-55s level in the FKLI as quite strong resistance points so if you do go long, I would suggest you take your profits as price may pull back in those area until we have a strong breakout from there.
Being a Friday, with many of the major market closed next Monday, I would want to be careful and take my profits and not leave money on the table.
Trade safe and here are you trading levels for today:
FKLI
Upper Resistance: 1542, 1546, 1548, 1550, 1554
Lower Support: 1537, 1534, 1531, 1524, 1520
Cash Index
Upper Resistance: 1550, 1553, 1556, 1560
Lower Support: 1541, 1537, 1534
Best Wishes,
Tech Trader
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