26 Nov – Like a rocket then hits its orbit
26 November 2018
4 Dec – Opens below low and early buyers lose enthusiasm
4 December 2018Pre-open Scenarios
The market gapped up at the open ON and held on to it’s gains. This was the picture at the close of business on Friday.
From the H4 and H1 chart which show the ON action, you can see that both resistance levels have been broken. The market is now at a critical point: the D1 upper TL; so the question is whether it will motor straight through that and move towards 11600, or whether we see limited further gains today because (1) the market want to digest the ON move and (2) it wants to fill at least part of the gap left ON.
How effective was my Neutral Zone? It was not possible to use a normal neutral zone a the market had gapped up into new territory so instead I drew a Neutral Zone to trade retraces (pink , which covered the ON range. The breakout of the range saw and once te market was back inside the zone it was safe to short.
How precise were my levels? RES 1 was spot on, SUP 1 saw a rally start just 4 points above the level.
Strategy for today’s PA
Today’s PA was difficult to short because we had broken two key TLs and the weekly cash chart 200 MA and were maintaining those levels. However, after an initial flurry of buying at the open, the market started to drift and range; if hit my RES 1 level and then reversed – that level turned out to be the high of the day.
