DJIA and Nasdaq 100

Last week on Dow I am aggressive when it hit to a low of 12,022, I saw divergence in the YM Chart and Long at the low region, but I queue 30 points lower for a safe trade, however, that price that I saw on that very moment, is already the lowest. Those who followed this blog, as well as TiP's FB immediate posting would be able to understand what I mean...

I am not sad, nor disappointed, I am happy because the market moves in a lovely direction, and that's why our trade never get initiated.

It is ok, because, coming week, it is a very crucial week for the Dow.

Dow Jones Industrial Average (DJIA)

Those who observe the 4H chart, will start to see the bull and bear fighting near EMA50 line, in which, I believe market will continue to try to balance out in big range in the coming week before a meaningful breakout is observed!

With the QE2 program now at midpoint (March-2011), investors will start to think how long the market can keep rising before the Fed decides to raise interest rates.
Everything will just happen, before the news come out to "explain" the market behaviour.

And reality, is sometimes so cruel that either you missed the whole down wave, or missed the whole up wave, did you missed the up wave? did you missed it until DJIA hit 80% of the monthly retracement level near 12318?

On 18-Feb-2011, Dow recorded a high of 12,395.25. Started to slide to 11987 in the following week but close above 12000. We identified 12000 key support for DJIA. Last week, it test 12022 low and bounce off immediately, DJIA closed at 12173.88 for the week.

Those who attended the Professional Trade Master Program, pls look into the Day chart and hunt for the start of a Trapezium. If you cannot see it clearly, use 4H chart to see it yourself.

We need Dow to break out from the channel and form a reversal. I would advise traders to stay out and wait for the trade of the month, watch the key level 12400, and 12000, and do not trade at any price in between, you either suffer high stress, or your trading account suffer big SL.

Intraday trader can trade with Fibo Range:
Establish Long at 12050 region, SL 11070 (typo error, should be 11970), TG 12200;
Establish Short at 12300 region, SL 12370, TG 12100.
Must remember that this trading strategy is only for Intraday, if Target price is not hit, the trade must close by End of Day)

Weekly position trade, watch the development of trapezium, expect Dow to break above 12300 to test double top 12400.

Nasdaq 100

Key support : 2300 - 2285
Resistance: 2400

Coming week will be exciting for Nasdaq 100, expect the key support region of 2300-2285 to push Nasdaq 100 higher to 2400 double top.

On Monday:
Aggressive traders can establish intraday Long at 2320 region SL 13 pts away, TG 2360.
For traders prefer to short, watch 2385 for opportunities.

Trade at the key support or double top 2400 for weekly position trade.

Related: DJIA on Friday, I long DJIA 30pts lower on Wed.. Last Week's Forecast on DJIA and Nasdaq 100 (28-Feb-2011)