Boosted by good news, DJIA closed at 12184.26 pts. Last Friday (+ 186.56 pts., 1.55%).
DJIA
Technically, 12180 is a double top resistance, tested and broken once on last Wednesday night.
Market shed almost 200 pts. the next day, turned down to support level 11950.
Stimulated by consumer confidence, market recovered on Friday and recovered above 12180.
This type of zigzag pattern is hard to trade; however, market is bullish bias. Market has tested its strong support 11950 and the bullish sentiment may extend for another week.
Since 12180 resistance is broken, we forecast DJIA is going to next level 12300. Upon reaching this level we reckon market to start channeling up testing higher high towards 12700.
We maintain the same view from last week, short term traders can Long and traders prefer to short, wait hunt, and observe for opportunity to unfold.
Monday trade plan: Long at initial shadow 30 pts from opening.
For YM on broco chart: Long at initial shadow near 12130 – 12145, SL 12080 (50 pts), TG 12300 (170 pts).
Trade plan is illustrated below:
NASDAQ100
Similar to Dow, Monday will be another up day target to reach 2340.
Long at initial shadow near 2308, SL 2300, TG 2340.
For NQ on Broco chart: Long at initial shadow near 2306/7, SL 2295, TG 2340.
2340 pts. is also a group resistance level, upon breaking above group resistance 2340, NASDAQ100 will trade towards 2365-2370, and failure to break above this level NASDAQ100 will fall back to 2275 pts, do not compromise your stop loss and trade responsibly.
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