Sunday 23 June 2013

23/06/2013 - a recap of the previous weeks trade.



It's Sunday the 23rd of June and the market will bring whatever it brings tomorrow, but for now I just wanted to quickly recap where we are at with the trade we took early in the S&P 500 session on Thursday.

On Thursday I basically wrote that I may have taken too much of a risk by betting that the support at 1,600.00 would hold as it had not been tested properly at that point, but that I was going to do it anyway as support and resistance tended to be stronger at, or around, round numbers such as 1,500.00 or 1,600.00 etc...


Well the support has not held and the market dipped just below 1,580.00 although it closed on the Friday higher at 1,592.43. I hope the support and resistance is at where I have drawn the lines below but only time will tell if I am reading the charts correctly or not. There is also the additional problem that, having fallen below the highly symbolic level of 1,600.00, the market may now experience a bit of resistance at that level and struggle to rise above it although I still think this is quite unlikely.

The lines on the price chart below are where I believe the support and resistance currently lies at -


 

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