Due to the fundamental factors in Japan, DJIA fell sharply early of the week, until it found support near 11550 region, rebounded and make gains later part of the week.
Resistance: 12000
Support: 11800
Support: 11600
Last week, we mentioned that
Once DJIA break below 11950, next will be a minor support 11800 and a strong support at 11600.I almost wanted to enter long 11600 region, but I hesitated, and this opportunity evaporated.. While I always encourage trading at key support or resistance, this is also a tough decision to make! :)
I believe through continuous practice, crisp market sense, a set of skills will develop and it will be with us forever, a set of good trading habits will develop, consistent results from trading will be the greatest gift we can give to ourselves, and provide to the family and community.
This week I anticipate DJIA to trade in small range capped within 12000 - 11800. If by any chance DJIA making marginal low and trade below 11800, observe for Long opportunity near 11750. SL 11680, Target 11900-11980 (EMA50 in 4H chart). Breaking above 12000 will be the resume of uptrend and 12300 will be the desired level to take profit.
Although from the chart I think it is not likely to happen, but on the flip side, considering the development of news from Japan and Libya, if DJIA trade below last week's low, expect DJIA to hit 2L 11470.
Nasdaq 100 on Monday 21-Mar-2011
Similar to DJIA, Nasdaq 100 found good support at 1/3 Fibo retracement level, which 2200.
This level 2200 will be a good level to watch for Long trade, SL 2185 (slightly below last week's low @ 2189). Aim your target exit at 2295 - 2300.
Related: DJIA and Nasdaq 100 on 13-Mar-2011
Hey! great blog and interesting trade!
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