It is all getting far too familar…
This week we will see markets range.
Just look at the triple top that has formed on the Dow Jones at 10470.
The three dates for these closing prices were; 25th Nov, 1st Dec and the 11th December.
This market cannot manage a great rally (on a closing basis) beyond this area.
One more fail at the zone this week, then we will see downward bias pick up momentum as we go into 2010.
I have range trades set already as of Friday. I am looking at two more this coming week.
Eventually, I see more downside movement, for now I think higher support levels are holding, so they should not be ignored.
My short term indicators are not pointing to anything major at the moment. There is no screaming ‘Sell’ or ‘Buy’ signal hounding at my ear drums.
Any high barrier for a high range above 10600 I deem as very safe for this coming week.
On the low side, 10300 is the next support, with 10200 also backing that up as the major underlying support zone.
As with the triple top, we have seen a triple bottom at the level of 10300, which has made the ‘10280-10550’ channel very ripe for trading these past few weeks.
Anything as far low as 10000 (or a little lower) would be a good bet, especially if you can grab these levels for min timeframe whilst returning over 20%.
Which as I am pricing today, it looks as though you will.
On the Ftse, I have a trade running right now; this is due for expiry the middle of end of this week.
My high barrier is marked just BELOW 5500, while the low barrier is just ABOVE 5000. I see a short term high being hit this week, before a modest sell-off just in time for Christmas.
On the £/$, 1.65 seems to be a tough level short term to break. Anything above this zone I see being well capped, as 1.61 will be seen first this coming week.
For a range trade, a high level of 1.655 and low of below 1.595 for 4 days would be great if you are happy to gain a modest return.
However, my main focus is back on the Indices this week, with maybe one trade on the Eur/Usd.
That is only due to the Eur/Usd being so close to its 50-day MA and ready to break it any minute!
I will be ranging the Index trades I place, with a view to short them just between Xmas and New Year.
Then the main (real thing I have been waiting for) sell-off can begin in Ernest as we enter 2010.
I would not get excited at least until Tues/Wed this week, when maybe we will see the real direction for year end roll out.
My guess is sideways to slightly lower, with one more high in this week.
This would top off a quadruple top just perfectly. Surely that would not be possible…?
Have a great trading week.
Be aware of low volume level mid-week, if so, get ready to go short.
Very Best
Matt $haw
www.fixedoddssuccess.com
P.S. Do you have 50-100k to trade with? I can make 25% per month throughout 2010. For Real! Get in touch now… fixedoddstrader@aol.com I will need to speak with you over the telephone too!
P.P.S. 2010 will be the best year yet! 20-25% per trade AND a 95% strike rate! Go Now: www.fixedoddssuccess.com
