Good day folks, Looks like the DJI is making an inverse H&S pattern. I will be trading it both ways; short and long. A breakout may occur or not, we will see. Cheers,
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Be careful if you're already long, we may have a double top here. Lets see if it survives and reach target 1 at 241.50 - 242.
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My trading plan for the short: @ 241.50, I will open PUT DIA 2018MAY18 241.00; @ over 241.50 at signs of reversal, I will open PUT DIA 2018MAY04 241.00.
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I think the high of the day could be around 242.40, in which case i would buy PUT DIA 2018MAY04 242.00 instead of 241 puts. Not sure yet though; i'm ready to pull the trigger, but this is a very risky trade. All the ingredients must be there.
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I'm watching for any signs of weakness. Basically, I expect DJI to go around 24260, and then pullback. If 24240 doesn't hold, I will be initiating my day trade put.
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I'm gonna avoid any day trade here, but the price is at the resistance downtrend channel line, which provides a nice spot for a short position with a longer timeframe.
Trade closed: stop reached
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I will get back in if 245 doesn't hold.
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Different numbers, but still look the same. Resistance at 245 is the key here.
Trade active
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Started falling
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I'm aiming at 240 for this right shoulder to complete. However, we have a bullish pennant showing up on the chart, stay alert. Cheers,