Monday, November 28, 2011

DJIA and Nasdaq 100

I have tried multiple ways to access the charts and finally it does… I think MT5 have been updating its client base and therefore my account is sort of deactivated after a period of time.
MT4 is working fine…


Quick look at what had happened last week:
Last week DJIA open at 11647.66, gap down, and no pull up, last Friday 25-Nov-2011, DJIA closed at 11,231.78. It was a short trading week, but the falling range is big DJIA shed 415.88 points in a week.

From the technical chart, if we plot Fibonacci Retracement Level from Oct-2011 Low 10404 to recent high 12285, we realized that DJIA has come to a major Fibonacci Retracement Level, which suggest a halt of bearish momentum.

With the worsen Euro zone debt crisis, this support level might just hold for few trading days before DJIA attempt to break lower to 11000 or 10800 level.

Daily Chart: With two small star candles, there is a potential technical rebound to 11500-11550.
For YM on Broco chart, technical rebound to 11450-11500.

4 hour chart: similarly, hunt for Short opportunity at EMA50 which is at the same level 11500 region.

Therefore for short term trading on Monday, I favor Long at 11190 SL 11140 TG 11390.
For YM on Broco chart, Long at 11290 SL 11240 TG 11490.

Hunt for another short opportunity after the technical rebound complete, target the next phase of fall will reach 11000 to 10800 points.


Witness the falling knife in NASDAQ 100, Nasdaq100 opened with a wide gap down of 30 points and shed 69 points from the week’s opening. If we were sitting in opposite direction, definitely the gap hurts!

Coming up this week, with Nasdaq100 traded below EMA200 on daily chart, market is bearish.

4 hour chart: upon touching 2150, market has fulfilled PowerWave wave target price. Technically NASDAQ100 will rebound to 2280, however, with the worsen fundamentals in Euro zone which trigger selling pressure; we reckon the immediate resistance at 2230.

In short, for beginning of this week, we reckon technical rebound up to 2230, and hunt for next shorting opportunity at 2230 or 2280 level. Target exit for short is 2050.

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