26th September 2017
For today I think we might get an initial move up, but I am positioning for a bear Tuesday by shorting at the resistance level at 7335. I have put in the trade plan two shorts – you can either treat them as 2 separate trades with tight stops or if you agree with my analysis, enter at both levels and fade in shorts – will give an entry around the 7344 level between the 2 of them. Hope that makes sense! The reason for this is that 7335 resistance looks good, but there’s also decent resistance fairly close at 7351 – I don’t think it will get this high today but you never know.
So, that’s what I am thinking, a rise and dip. if the bulls were to break above the 7351 level then the 7380 to 7390 area is the next area of note. We have the top of the Raff channels around here as well as the daily coral. Would be worth a short around 7380 if it were to get this high (Yellen might really talk it up for example). We also have Carney talking on Thursday so I think the rise to this area is more likely Thursday but we shall see – its a level of note.
Support wise for today, the bulls will be keen to hold the 7288 level and protect yesterdays low at 7273 as well. The 2 hour coral is at this level and if the bears were to break this then a trip down towards 7200 looks pretty likely – 7212 being the key price. There is a fib level at 7255 but not sure that will be strong enough to arrest some concerted selling (famous last words).
So, feeling a bit more bearish for today and looking to position as a seller.