Trading Plan for the days action 8/04/22

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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 made back earlier losses to end the session with gains. Bargain hunters provided the support needed focusing on the coming earnings season while the USD continued higher along with Bond yields which crept higher.

The SPI200/ASX200 both were supported on a push lower into support before ramping back to resistance into the close. Price action remains choppy and volumes light which means the market could get pushed either way. For me, price will need to consolidate the rally before another leg higher or provide a lower high for a sell back towards support. The DOW initially flushed support at 34330 before ramping up through resistance at 34566. Price touched into a minor level at 34690 before fading into the close. Will be watching the 34690 level to see if bulls can continue the push higher or whether the level holds for another move down. Hang Seng is only just holding a longer term trend up (as shown by the channel) so may be looking to lift through 21790 and squeeze out some recent sellers. Would like to see an opening flush lower before the ramp higher and a clear higher low to buy into. If we see another big spike on the open…the action may get a little choppy and tough to trade. The Nikkei held below 27225 but also held a higher low around 26876. Will be watching the opening drive to see what bulls have in store and whether they can start a short squeeze in anticipation and a positive end to the week in the US ahead of earnings. Levels will be 26990 or down to 26876 and 27225.

Cryptos were well contained for the session and held below a key level. Bitcoin held below 44150 while Ethereum held below 3270. Both fended off further selling pressure so we may see buyers enticed back into the action today and into the US session.

Spot Gold edged its way higher off 1916 but held the recent downtrend and well below 1944. Will be watching to see if price can soak up any selling pressure today and through European trade to hold a higher low for a push into 1944. The strength in the USD will hamper any rally but if the USD rolled over, then bulls will step into gold.

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SPI200 Index