Friday, November 11, 2005
Issue Contents:
| 10:43 | Futures Key levels |
Following yesterday’s breakout above resistance at 10575, price made new multiday highs:
Key levels:
- 10575 should now be considered as a do-or-die support level which must hold, in order for the current rally to be viewed as such by most market participants. I’ll be keeping my bias ot the long side for the time being as long as price remains above this level;
- If price today doesn’t lurch up and out of the range setup yesterday afternoon, we’ll probably see price pull back to the 20 or 50 period moving average on the 15M charts, and possibly a dip below yesterday’s breakout level near 10620.
Trading plan:
We can expect sluggish trade today – some financial markets (CME forex and interest rate products, CBOT pit is closed, for example) are closed in observance of US Veteran’s Day / Canada Remembrance Day.
With fewer people active in the market today comes lower volume and higher potential for chop. We should look for a breakout above yesterday’s range and then stalk a retracement; in general, scale back activity and be extremely selective in terms of what we accept as a worthwhile setup to trade.