It has been a volatile week for the Dow, DJIA has shed 624 pts on Monday - worst since Dec 2008 and then gained 428 pts on Tuesday after testing the strong support at 10600 region, after which the Dow shed 503 pts on Wednesday and gained 395 pts on Thursday with better unemployment claim and continue to rise for 125 pts on Friday.
Weekly candlestick pattern suggest that Dow has found a strong support at 10600, Dow may continue to trade in range but will be suppressed under 11840 level – below its EMA200 line on Daily Chart.
Daily chart shows that DJIA has fulfilled 1/3 retracement (from the highest point in July to the lowest point last week) and with the current bullish sentiment, I forecast DJIA to continue to rise until 50% retracement level on Monday and Tuesday, which is 11650-680 coincide with EMA50 (4H Chart).
For intraday trader, it is good to enter long on Monday but have to follow your trade plan and avoid holding overnight position. There are simply too many announcements and market volatility will make your 300 pts profit run away very quickly.
Upon reaching the 50% retracement level during mid-week, observe for reversal sign either here or near 12000 regions (EMA200 on Daily Chart); grab the opportunity to short DJIA for a good position trade - lets ride the south train together :)
NASDAQ 100
Up up Nasdaq 100 towards 2220 and strong resistance 2250.
Current support 2155.
Similar to DJIA, bullish sentiment shall continue on Monday & Tuesday, good for intraday long trade setup.
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