It was low volume chop day, but the key levels worked very well. The Initial Resistance Zone of 1112-1113.50 acted as resistance in the overnight Globex session, and price paused there several times. The GDP release pushed price down to 1110 and it became a swing low, and thus a key reference point (I took a Fib measurement of this swing to get some range extension targets if price reversed to the upside). Price pushed up to 1115.75 on the Existing Home Sales #, but couldn't get beyond that. You can see on the 5-min chart that price hit that level 4 times, and couldn't get through it, and it was a low-risk area to initiate a short with a tight stop. From there, we sold off the IB low, but 1110-1110.75 was support and the 1110.50 low was rejected. 1112 was previous day's IB High. I posted the 1112 level on Twitter/StockTwits several times in the afternoon (bullish above 1112, bearish below). It was a key reference point to establish a short-term bias, and served me well.
ES 5-Minute Chart for 12/22/09 Includes Overnight Globex
No comments:
Post a Comment
At the minimum, please provide your name or Twitter handle when posting comments. Do not post as Anonymous. Comments that contain links to commercial websites will be marked as spam.