Trading Plan for Friday, April 19th, 2024
Trading Plan for Friday, April 19th, 2024
Market Sentiment: Uncertain, with bulls and bears battling at the critical 5045 support zone. A decisive break in either direction will set the tone for the next market move.
Key Supports
Immediate Supports: 5044-46 (major), 5039, 5033
Major Supports: 5020, 5013 (major), 5000, 4990-95 (major), 4959 (major), 4937 (major)
Key Resistances
Near-term Resistance: 5054 (major), 5066, 5077-5082 (major)
Major Resistances: 5112-5115 (major), 5150-55 (major), 5177-80 (major), 5203 (major)
Trading Strategy
Focus on the 5045 Zone: This zone has become a battleground. Observe closely for breakouts or breakdowns, as these will trigger the next directional move.
Long Opportunities: Due to the choppy nature of the 5045 zone, direct bids are less reliable. Consider bids with a failed breakdown at 5039 or only at major support levels, particularly 5013 and 4990-95. Prioritize the knife-catch protocol for deeper longs.
Short Opportunities: Look for backtests of the 5077-82 zone, or more reliable setups at 5112-5115 and 5150-55 for shorts. A breakdown below 5039 offers short potential, targeting 5013.
Profit-Taking: On shorts, consider taking profits entirely at major levels, especially given ES's tendency to short squeeze.
Bull Case
Holding Support: Bulls need to defend the 5045 zone to maintain control.
Relief Bounce: If 5045 holds, a bounce to 5082 and potentially 5112-15 is possible, with further upside potential to 5150-55 if momentum is sustained.
Adding on Strength: Breaks and acceptance above 5054/5060 could offer opportunities for adding to long positions.
Bear Case
Breakdown Signals: A convincing break below 5039 triggers the downside move, likely heading towards 5013 and potentially 5000. As always, be wary of traps – look for a bounce/failed breakdown first, then consider shorting.
News: Top Stories for April 19th, 2024
Economic Environment
Inflation remains a factor despite a decline.
Corporate profits show resilience.
Potential for a record-breaking expansion cycle in the US.
Uncertainty surrounding persistent inflation or negative economic news.
Reminder: The market is reacting to the battle at the 5045 level. Prioritize risk management and adapt your trading strategy accordingly.
Market Sentiment: Uncertain, with bulls and bears battling at the critical 5045 support zone. A decisive break in either direction will set the tone for the next market move.
Key Supports
Immediate Supports: 5044-46 (major), 5039, 5033
Major Supports: 5020, 5013 (major), 5000, 4990-95 (major), 4959 (major), 4937 (major)
Key Resistances
Near-term Resistance: 5054 (major), 5066, 5077-5082 (major)
Major Resistances: 5112-5115 (major), 5150-55 (major), 5177-80 (major), 5203 (major)
Trading Strategy
Focus on the 5045 Zone: This zone has become a battleground. Observe closely for breakouts or breakdowns, as these will trigger the next directional move.
Long Opportunities: Due to the choppy nature of the 5045 zone, direct bids are less reliable. Consider bids with a failed breakdown at 5039 or only at major support levels, particularly 5013 and 4990-95. Prioritize the knife-catch protocol for deeper longs.
Short Opportunities: Look for backtests of the 5077-82 zone, or more reliable setups at 5112-5115 and 5150-55 for shorts. A breakdown below 5039 offers short potential, targeting 5013.
Profit-Taking: On shorts, consider taking profits entirely at major levels, especially given ES's tendency to short squeeze.
Bull Case
Holding Support: Bulls need to defend the 5045 zone to maintain control.
Relief Bounce: If 5045 holds, a bounce to 5082 and potentially 5112-15 is possible, with further upside potential to 5150-55 if momentum is sustained.
Adding on Strength: Breaks and acceptance above 5054/5060 could offer opportunities for adding to long positions.
Bear Case
Breakdown Signals: A convincing break below 5039 triggers the downside move, likely heading towards 5013 and potentially 5000. As always, be wary of traps – look for a bounce/failed breakdown first, then consider shorting.
News: Top Stories for April 19th, 2024
Economic Environment
Inflation remains a factor despite a decline.
Corporate profits show resilience.
Potential for a record-breaking expansion cycle in the US.
Uncertainty surrounding persistent inflation or negative economic news.
Reminder: The market is reacting to the battle at the 5045 level. Prioritize risk management and adapt your trading strategy accordingly.
