This is the final trading day of the week. So, lets get started!
We will see how the US market closed last night.
The Dow closed down 62 points or -0.47% to close at 13,207
The S&P500 closed down 11 points or -0.77% to close at 1,392
The Nasdaq closed down 36 points or -1.16% to close at 3,024The S&P500 closed down 11 points or -0.77% to close at 1,392
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So we closed down again last night but not by a big margin. Tonight we have unemployment data so many traders will be watching this data. A good number will push the market back up and a bad one will push the market further lower to test support. May is traditionally believed to be a bearish month, but we still have to trade based on our levels and patterns. The S&P is currently trading at 1385.75, down 0.25 since last close which is the 20ema in the daily chart which should provide some support. If the unemployment data is weak, we will break down further into the flag pattern of last two weeks.
Let us look at our local market now.
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Ok, what's up for our local FKLI today? We closed as a doji yesterday and the Cash market have yet to cross over the 20ema. The US market closed down further which is a good thing if you are looking to establish a short swing position. I will be looking if resistance can hold, and if yes, I will put on the swing position in the coming days.
Alright lets look at Intraday trading. Seeing that we have unemployment numbers tonight, I think the market should be fairly quiet today and trading within a range. However, you should also be alert for possible breakouts as this is the market and anything can happen however unlikely it seems sometimes.
So I will be looking to scalp within a range. Yesterday's doji and the bull's inability to close above the 20ema confirms that there are still enough sellers to keep prices from spiking up sharply. So if we really turn out as a range trading day, do not be caught selling the bottom and buying the top. Yesterday I followed the lead of the cash market and I will be looking to do the same thing today too. Seems like the price of futures and cash have been quite close the past two days.
If you are planing to trade the break outs like yesterday, make sure that the trend is strong enough to take prices all the way to your target market. Yesterday's last trade was a small loss because I bought at near the top. So, you have to be careful.
Here are the trading levels for today.
FKLI
Upper Resistance: 1585, 1588, 1591
Lower Support: 1580, 1578, 1575, 1570
Cash Index
Upper Resistance: 1585, 1588, 1590
Lower Support: 1580, 1577, 1573, 1571
Trade safe and I'll update here if there is anything urgent. Make some money into the weekend! Ciao!
Best Wishes,
Tech Trader
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