Friday

Trade Plan Friday Night

Post a Comment February 27, 2009 – 5:24 am |   | Permalink |  Print This Post |

The markets are currently at the lower support line, hanging by a thread, with very little energy up even in afterhours trade (at the time of writing the Dow only managed to get to a high of 7219). The buyers are just not out there. Last nights fall to a low of 7169 is, however, a higher low. So, the hopes of technical traders for a rally are still in play. The bearish movement after hours suggest things are going to go down (or at least it wants you to think that). In our previous post, we suggested prices may fall - having reviewed our indicators again, there are a few indicators suggesting a rally tonight. There is more upside than downside with Dow at 7198 (at the time of writing), as it is so near the lower support line. Risk reward is therefore worth a long position. We have entered a small $5/point long position at 7198, with a stop at 7000. A break below previous low would be a give away as to the direction of the market. It is more likely for the market to move sideways and ding dong to shake off the bulls or bears. So we feel that at lower support trend lines, go long lightly. Everyone thinks its moving up - and so far there is no reason why it should not technically - except our for our Morphology Analysis and Round Number Theory. We will update this post after we receive Mr Magiks entry.