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MARKET COMMENTARY -Sharp fade from yesterday continues into the morning with support edges at the heat of the battle near 2884- just above the lower support line of 2875. Volume profile building 2882 as key support for now Market volatility remains a concern.
WEEKLY PRICE ACTION
Neutral to negative action, and flattening to negative momentum are now present. Bigger picture- all the watched indices are still in breakout formations though looking the most vulnerable I have seen it in some time. This makes for a messy patch of trading.
The line in the sand today is 2894.75 – above this zone, buyers will be more brave. Sellers hold the upper hand below 2884 with the key support lower at 2842.
COMMODITY & CURRENCY WATCH
Gold prices bounced to above region near 1504 is still primary resistance. Deep pullbacks remain active buy zones – short positioning will require careful attention. The US dollar is holding above 99 and should grind to 100, with deep dips finding buyers. WTI has fallen back into below the 53.40 support area as fears of global slowing continue. Failure to close the week above 55 will be quite bearish and we are sitting just above defined support zone near 51.40.
TRADING VIEW & ACTION PLAN
Buyers are struggling near 2883. Deep pullbacks are still the best places to engage if risk exposure is your primary concern and you are considering long action. Trade the edges of these formations and realize that we could bounce higher than anticipated and fade deeper than anticipated on the monthly close and quarterly close before returning to the range. Follow the trend in the shorter time frames and watch the price action. The theme of motion is NEGATIVE AS LONG AS WE HOLD BELOW 2884ish today -and POSITIVE AS LONG AS WE HOLD ABOVE 2902ish today. Do what’s working and watch for weakness of trend. Please log in for the definitive levels of engagement today.
METASTOCK SWING SHORT – swing shorts will now be daytrade shorts as the profile is building in
METASTOCK SWING LONG – inactive
Intraday LONG trading from support edges like the VWAP or solid moving averages will give you the least risk event for engaging. Intraday SHORT trading from resistance edges like the old highs will give you the least risk event for engaging. Follow the candle trend until candles stop breaking higher.
IF YOU DON’T JOURNAL YOUR PROGRESS, YOU SHOULD – How about finally starting that trading journal?
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