US Dollar gained the most since August against six major counterparts as concern that Europe’s debt problem will worsen and military action in Korea will escalate boosted demand for the U.S. currency as a refuge. Souce: BloombergDow Jones Industrial Average (DJIA)
As per our previous week posting, DJIA had a week of consolidation down and up, highest DJIA has reach is 11205 and 11195 on last Monday and Wednesday, while 10992 is the lowest of the week.
Great call from Sarah to pick long near bottom. :)
Current Resistance: 11200
Current Support: 11000
Personally, this market is difficult to trade now, most of the people may just miss the opportunity, some may ignore, however, during extreme uncertainty and volatility, there's a big opportunity if one keeps his focus and remain sharp!
1. DJIA 11000 support hold strong, market break above 11200, 11300 and head higher to 11500.
2. DJIA continue its consolidation, test 11200, resisted, bounce back to 11000, break below this 11000 support and dive to 10750.
I favour the 2nd scenario, let me share the experience observing trapezium in EUR/USD (completed last Friday)...
after 1 week of consolidation from day chart, must capture opportunity to short at 11200 region, once missed, and the dive begin, there may be no retracement for us to enter the market.
Fine tune your entry with 30 minute chart when DJIA approaches 11200.
However, if you miss, and the dive has already started... trader can practice initial shadow entry, 50-50 chance of getting an order filled.
Abandon short view if 11300 is violated.
Nasdaq 100 performed slightly bullish as we compare to Dow Jones. As the retail market is strong and last weekend's thanksgiving shopping, I believe Nasdaq has the chance of going higher.
Trader can choose to short near resistance level 2162-65 with SL 10 points away.
Target 2135, and 2105.
==== I spent 3 hours for DJIA forecast again.... >.< ====
Is this due to low productivity during mid night?
Good night traders, hope you like my share, happy planting the best short position in this coming week!