Key Support Holds Test

“Da Bears” could not stage a follow through day as Bulls defended “key support” (1938) and forced Shortie to cover, driving price back to Upper Value. Here is an excerpt from yesterday’s DTS: More important resistance can now be marked between 1950 – 1955 zone and support between 1938 – 1944 zone. These zones will be critical barometers for future direction…Penetration or Violation of these zones will determine the Bulls or Bears resolve.”

Prior Session’s Scenario 2 played out as scripted: “IF buyers respond in sufficient quantity and strength to any additional selling, holding key support (1938), THEN retracement zones are 1945 – 1946.50, followed by 1948 – 1950 zone.”

Let’s look at today’s hypotheses:

Scenario 1: IF buyers continue to dominate above PDH (1953.25) and convert, THEN initial targets measure 1956.00, followed by 1960.00.

Scenario 2: IF price fails to convert PDH (1953.25), initial pullback support is 1945 handle, followed by 1940 – 42 zone, with 1938 as key support marker.

Trade Strategy: Key resistance zone between 1950 – 55 will be an important test of bull/bear resolve. We are initially viewing this zone as supply, and as such, looking for short-side trade opportunities with evidence of weak buying interest. This does not preclude buying off of key support zones with proper we will remain flexible to seek out two-sided trade opportunities. Two well-defined Upper and Lower Value Zones may keep trade action contained within range-type trade…We’ll remain flexible with our tactical intra-day trades.

Focus on the Trading Process…Not the Outcome  ALWAYS USE STOPS!

Good Trading…David

Habitude Ten
I know anything can happen, and I can handle anything that does happen. I am open minded. My thoughts and perceptions are clear. I know what to look for. I have rehearsed everything. I adapt to change. I will listen to my indicators and the patterns that emerge. I will adjust and not demand that things continue as they first started.


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