Trading Plan for the days action 5/04/22

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Refer to charts for comments on expected price action. Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN.

US markets ended higher again after twitter lended support to the Nasdaq as tech led the move higher. The prospect of more sanction on Russia lifted oil prices to add to inflation concerns. The bond spread between the two and ten years has traders concerns as it remains ‘inverted’ which history tells us, leads to recession in coming years. Shares are still the place to be as buyers support opens and US heads into reporting season.

The SPI200/ASX200 both moved higher in after hours trade after a tame day session. Bulls again were waiting for the US session before doing any heavy lifting. The indexes are extended so may need to flush lower on the open to put some overnight buyers back on the sidelines before another push higher. Ideally, watching for a flush lower and a higher low to hold for a buy setup. The DOW fended off some selling on the US open which pushed price down into 34565 support zone. The move was a simple flush to clear out some buyers before the ramp higher into the close. Watching to see if 34892 can hold today and buyers support a move up into 35055. Watching for a higher low entry setup. Hang Seng also ramped higher in a move that started in the Asian market session. Price is extended and may find some profit taking on a push up through 22663. Ideally watching for a flush up through the overnight highs and then a lower high. The underlying index is closed for a holiday. The Nikkei underlying index will gap up on the open after the Index was ramped higher along with the US market. Price is extended into 28040 and finding some sellers. Watching for a lower high to build and flush out some bulls from the overnight run up. If price breaks up through 28040 and holds, then looking for a continuation higher low.

Cryptos were under pressure from the open of the Asian session but then found some buyers off support in the US session to minimise the days losses. Bitcoin pushed into 45400 before reacting higher. For a buy, I would need to see a minor pullback to hold a higher low. For a sell, would ideally like to see a failure off 46875 and lower high. Ethereum is much the same for a long and for a sell, would like to see a lower high hold.

Spot Gold managed to work its way up off 1917 and held an inside higher low at 1925. Want to see the 1925 area hold for any long entry. Happy to see the level tested and then hold for a long but if it breaks and holds a lower higher, will be looking for a move down into 1917 and potentially lower.

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SPI200 Index