Sunday, March 13, 2011

DJIA and Nasdaq 100

Refer to our previous week posting, we mentioned that DJIA currently trading near EMA50 in the 4Hour Chart, we at Ayumi the Novice Trader said that:

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!
As per our forecast, DJIA continue a whipsaw week, and make traders who were trading at the mid-range will suffer the roller-coaster ride, while traders who trade Long at 12050 with SL 11970 will be happy to grab the profit of 150 pts!

Related post: DJIA and Nasdaq 100 on 7-Mar-2011

We maintain our same view that DJIA will be in big range before a meaningful breakout is observed.
Watch the key support @ 11950-12000 and resistance @ 12400, waiting for the breakout.

Once DJIA break below 11950, next will be a minor support 11800 and a strong support at 11600.  Traders can initiate trade based on BKO with SL based on Friday high 12100-12050.

Breaking above 12300, watch the development of Trapezium, and hunt for short opportunities at 12450.

Nasdaq 100

Nasdaq 100 turns out to be trading in the direction during Monday, Nasdaq 100 found the key support 2300 strong last week, rebounded on Monday when it touches 2308 low, but were resisted at 2348 and followed by a BKO to the bottom.

Last Friday, Nasdaq 100 formed a bullish candlestick reversal pattern, engulf the previous day losses and closed at 2301, well above the key support level for the week.

We maintain the key support at 2300 - 2285
Resistance 2400.

Aggressive Long traders can initiate Long at 2285, SL at 2275, TG 2325, position shall be closed by EOD.

If Nasdaq 100 convincingly break below last week's 2275 low, next will be a minor support 2255, then 2210.

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