We are opening in range and in value from Friday. Overnight trading was mostly sideways. OPEN is 3981.75 Settlement from Friday was 4000.25. There is not much new information entering the market today and we are looking at a small range bound trading day. It is important to stay patient and wait for the IB to establish.
Price tested the overnight low and returned to OPEN price, went past overnight high and settlement from Friday. So far we had one range extension to the upside in B period. The IB is 31 points and the POC is at 3991.50 as of 8:15am.
First impressions of the day
First trade and analysis until 9:30
10 am, the TPO point of control moved up to 3999.25
11:13
Trade 2 and 3 Rectangle breakout
Trade 2 &3 in detail
At around 10:40, price started to rest between 4012 and 4017. My first short got stopped out right away because I had it placed at around the bottom of the rectangle. The Second short was entered at the upper part of the rectangle with a stop loss of around 8 points to the upside. i also placed a long above that stop in case we continue to the upside. I exited this trade too early, unfortunately because it continued further downward. This was a good entry point because we were far enough away from POC and VPOC. I should have used 50% fibonacci to place my stop loss.
The small range of I period was foreshadowing that buyers are losing strength and sellers are bound to take over.
Instead of a further range extension to the upside, we ended with an extension to the downside and a spike in M period. Settlement was at 3966. POC was at 4000.75 Today’s range was only 53.5 points. Regardless, value was established overlapping to higher compared to Friday.
Day summary
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