Tuesday

Magik Numbers: Edition 2

Post a Comment January 27, 2009 – 10:02 am |   | Permalink |  Print This Post |

MAGIK Numbers

Daily and Weekly Dow Jones | FTSE Analysis

By Mr. Magik

27 Jan 2009 | Edition 2

Dow

We would have taken our trade plan for Dow at 7940 and profitted 240 points from it. The Dow closed at 8116 on Monday which is very near the daily pivot. We are expecting the Dow to trade within a range of 8224 (R1) and 8016 (S1). Swing is neutral at 58% hence on a daily basis the market is expected to consolidate between the support and resistance level 1. There are no key overlap points between daily and weekly analysis however the zone between daily S1 8016 and weekly S1 7895 is expected to provide strong support.

Trade plan

– Indecisive, trade the range sell R1 and buy S1 otherwise sideline.

FTSE

The FTSE closed at 4209 in a overbought position on Monday. The expected trade range is between 4266 (R1) and 4092 (S1). FTSE can test lower daily support 4092 S1 first before going back to pivot.

Trade plan

- Sell 4217 (R1) with stop at 4266(Daily R1). Target 4092.

Best to your trade,

Mr.Magik