Tuesday

Magik - Edition 7

Post a Comment February 3, 2009 – 1:59 pm |   | Permalink |  Print This Post |

MAGIK Numbers

Daily and Weekly Dow Jones | FTSE Analysis  

By Mr. Magik

3 Feb 2009 | Edition 7 

Dow

No trade taken. The Dow closed at 7937 on Monday. We are expecting the Dow to trade within a range of 8005 (daily R1) and 7875 (daily S1). Swing is oversold at 26% hence we are expecting a bounce to at least pivot today 8005. We expect daily S2 7800 to provide support, and is fair to buy here. As expected yesterday’s S1 7920 broke as weaker bulls sell or cut loss. The key overlap point is at 7800 which should be the next area if strong support, this level is expected to provide very strong support today. Despite the expected strong support at 7800 level, tight stops must be maintained on all long positions. 

Trade plan

Long at daily S2 7800 with a target of R1 8005, stop is 7730.  

FTSE

The FTSE closed at 4078 in a oversold position on Monday. The expected trade range is between 4120 (DR1) and 4040 (DS1). FTSE has turned down trending as we continue to make new lows yesterday. It should touch DS1 4040 if it is downtrending. 

Trade plan

Should have been long from yesterday 4050, stop at 4030, target 4120 DR1. 
 

Best to your trade,

Mr.Magik