What can we expect in the week to come?
Well, we’re anticipating some movement to the downside potentially targeting the 1760-55 . We have an Excalibur target at around the 1780 level so we shall trade with two options in mind.
If the price opens and targets the higher level of 1780-83, finds resistaance, then its likely we may see some bearishness towards the support levels. That would give us an opportunity to resume the momentum then targeting the 1790-95 levels. So we’ll look for support and then take a small long trade for the higher level. IF we go straight up towards 1790-95 then we will be looking to short the market there for the lower levels of support.
If the price opens with pressure and tests the lower support levels first, then that would represent a good opportunity to long the market towards the higher levels, first target being the 1790-95 price point.
This isn’t a great month to be trading the markets aggressively, the week after next we have the Jackson Hole Symposium so its very likely traders are going to get stuck in positions pre-event. We’ve traded this event several times and its very difficult to determine without experience. We would recommend traders trade cautiously for the remainder of the month. Its only two weeks of the year, as a trader you need to stay disciplined and know when to take it easy. When the market gives, takes as much as you can, when it takes, give as little as possible.
We've added the weekly char with levels. Please add these to your charts and keep an eye on the trend. It shows we have a possible weekly target of around 1809-14. So lets trade it how we see it.
We’ll be back tomorrow with our usual trade ideas and plans.
As always, trade safe.