Trading Plan for the days action 26/04/22

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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 share Indexes staged a recovery earlier in the session to squeeze out some shorts from Fridays selloff. Elon got the go ahead to buy twitter which provided some support to the NASDAQ and in turn the broader market while the DOW lifted as growth stocks were soaked up. I feel it was more some bargain hunting that supported the action as the underlying negative concerns remain.

The SPI200/ASX200 pushed lower along with the European markets as the SPI200 opened for the night session. Price reversed off lows once the US started to rally. Prices look to be squeezing out some sellers and I would expect this to trigger some bargain hunters on the open although the longer term structure remains negative so could resume lower at any time. The DOW bounced off lows around 33380 and tested back up into 34104 into the close. Prices are extended so I will be watching to see if we get failure at the 34104 area and another leg down or whether bulls will try to march price higher from here into the US open…either way the 34104 area is the focus today. Hang Seng took a hit yesterday but did find some tentative buying off lows overnight around 19715. The move up was not so convincing and the underlying index is in a downtrend. I will be looking for a squeeze higher but on guard for a bull-trap and leg lower off 20114. The Nikkei played out similar to other major indexes and squeezed out some shorts on the US bounce. Price found buyers below 26592 and I expect to see an opening flush up into 26930 on the open. If the level holds the flush, then looking for a lower high and shorts.

Cryptos continue to follow the ups and downs of the US share market. Bitcoin bounced up off 38550 but fell a little short off resistance at 40600. Watching for bulls to test into the level and try to squeeze out some sellers of the leg down from 42830. Ethereum bounced up off 2776 and into 3031. Will be watching the 3031/3051 zone to see how the buyers/sellers react but expect that the action may be contained until the US opens.

Spot Gold took a beating to disappoint the gold bulls and inflation hedge traders. Price is hovering around 1893 and looks like it could easily extend on the losses into 1875. Bulls will need to see the level hold to work off a higher low. If price starts to edge lower, stops will be targeted which may be enough for a spike lower.

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SPI200 Index