The market sell off yesterday with most of the stocks making a daily limit down of 5 % with fears of current virus conditions on the economy more pressure came as saudi markets opened in red and sold off. With todays closing in DFM it have found support at fib level of 38.2% retracemnt from the recent highs. The current short term trend of the index is up trend making higher highs. In a trending market a correction of 38.2% or 50% of previous rally is considered as a healthy correction.
Now the question is after this beautiful hammer candle at the support level are we going down or up ? in my opinion we need a confirmation candle to move more upside, If we can close anywhere between or above 1980 to 1985 tomorrow would be considered as strong signal to move more upward anything below would be a weak signal.
I didnt close my positions in yesterdays panic selling as i knew we can expect a short correction. So i will be looking to sell later this week or next.
Happy trading :)
Now the question is after this beautiful hammer candle at the support level are we going down or up ? in my opinion we need a confirmation candle to move more upside, If we can close anywhere between or above 1980 to 1985 tomorrow would be considered as strong signal to move more upward anything below would be a weak signal.
I didnt close my positions in yesterdays panic selling as i knew we can expect a short correction. So i will be looking to sell later this week or next.
Happy trading :)
Comment:
A weak closing like this is always confusing, low volume, high profit taking in todays session. We wait for tomorrows session to know the market direction.
