Trading Plan for the days action 28/02/22

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Charts Marked with anticipated price action entry setups in yellow.

Another big short squeeze and more bargain hunting sees markets rally hard into the weekend. It seems that traders are happy with the outcome of the US sanctions on Russia but things could change quickly. The situation has ramped up over the weekend so it will be interesting to see how Russia reacts to global economic sanctions.

The SPI200/ASX200 both extended hard into potential resistance areas as sellers bailed and were squeezed back out. Expecting the ASX to open strong but will not be looking for a long unless I see some corrective action to flush out some buyers first. There may be the opportunity to sell off a lower high if price suckers in more buyers on the open after a flush higher. The DOW ramped up again into 34010 with the move up being very extended. For any long position, I will need to see a pullback first to clear out some buyers. If any spike into 34010 fails, then will be watching for a lower high and sell for the squeeze on buyers. Hang Seng was a lot more contained than the ASX200 and DOW into the US close. Price did not see the same enthusiasm to the upside as the other indexes and held below 23135. This is the key level today for either a sell off the level or a push up into 23375…the opening action will be key. The Nikkei had no problem ramping higher and even flushed out stops above 26910 into the US close. If price holds above 26910, then will be looking to work off a higher low and an initial drive up into 27209. Like the other indexes, price could easily trap some longs for a squeeze on buyers and move down so the open will be important.

Cryptos will open lower with Bitcoin potentially pushing back down below 38850. Expecting to see some unwind of long positions from 36380 and a squeeze lower. Ethereum is also under pressure off 2748 so will be looking for a lower high off the level and for a move back into 2590.

Spot Gold came under pressure again after bouncing up off 1886. Sellers pushed price lower from 1910 to hold the lower high so may see more action lower today if 1886 can not hold. Since the safe haven bid has been flushed out of the market, new buyers will need to defend the level again otherwise I expect to see price test into 1876.

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SPI200 Index