First off, lets say that today’s session did not go to plan. In this morning’s article, we highlighted what we were looking at as far as key levels was concerned, and suggested how would get into the markets according to these levels. We put in term support at 281.55, and in term resistance at 285.86. At time of publication, both these levels represented the daily low and daily highs respectively. We were trading around mid range when we said that we would look for a break above or below is a level to put us long or short respectively, and we did get a break to the downside, but it did not work out as we hoped. With this said, what of levels that we are watching during tonight’s Asian session, and where will we be looking to trade on a breakout? Take a quick look at the chart.
As you see, our key levels we are exactly the same as this morning. In term support sits at 281.55 and resistance at 285.86. If we get a decisive break above or below its level (a break above 285.86) it would put us into a trade in the direction of the break. However, as we head into this evening session, it may be worth addressing a intro range strategy instead. Based on this, if we hit 281.55 and bounce, we will look to enter long towards 285.86, with a stop loss somewhere around 280 flat maintaining a positive risk reward profile on the trade. Looking the other way, if we had 285.86, we will look to enter short back down towards in term support at 281.55. Once again, a stop loss is warranted on this one – somewhere around 287.5 should keep things attractive from a risk management perspective.
Charts courtesy of Trading View