Trading Plan for the days action for 31/05/22

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Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN. There will be many possible scenarios shown so it is key to work off major levels and higher lows/lower highs once the price action unfolds. All prices refer to the CFD pricing from the charts below.

OVERNIGHT MARKET SNAPSHOT FOR TUESDAY 31/05/22

The US markets were closed leaving the Asian and European markets to carry on from where they left off Friday. The end of the Month may see some volatility and profit taking from the previous few sessions but we will see tonight. The DAX and UK100 have moved up into resistance while the Hang Seng and Nikkei are also hovering around resistance levels. The ASX200 is being held up around 7237 so could continue to edge higher from the open today. No major Data releases today. Expecting markets to be relatively contained today with no lead from the US. Expecting to see recent gains held across the board into the end of month ‘window dressing’.

Markets have re-opening and edging lower across major Indexes which I expect may be a trap on sellers prior to Asia trading kicking off.

The ASX200 is expected to open DOWN 5/10 points after the SPI200 saw some minor profit taking in a quiet overnight session.

SPI200 (Jun) overnight futures down 12 pts to 7283
SP500 Closed
NASDAQ Composite Closed
Dow Jones Closed
FTSE100 up 20.54 pts to 7585.46
DAX30 up 230.90 pts to 14462.19
GOLD futures US session (Aug) Closed – Spot price UP $1.41 to $1855.20 an ounce
COPPER futures US session (Comex Jul) up $0.0270 to $4.3335 a pound
OIL futures US Session (Nymex Jul) up $2.10 to $117.17 a barrel
CRB Index Closed
AUDUSD trading at 0.7196
EURUSD trading at 1.0779
GBPUSD trading at 1.2654
USDJPY trading at 127.5900
USD Index US Session (ICE Jun) down 0.363 to 101.335

CLICK HERE FOR ECONOMIC DATA OUT TODAY (AEST) 31/05/22

The SPI200/ASX200 opened a little stronger at the start of the European session and then faded lower as I expect a lot of buyers were happy to lock in some gains as the US market was closed. Levels I am watching on the SPI200 is highs at 7300 and overnight lows at 7276. The DOW held above the 33220 level in a shortened session but may look to test some longs today before the open later tonight. Will be looking for a squeeze lower ahead of the US session and for another ramp higher to close out the month on a positive note. The US Tech 100 also had a shortened session but held on the recent gains as Europe as up. Price is holding just below 12960 which I expect will be tested at some stage tonight. Watching for a flush lower and for a higher low to build and hold for a late run up. Hang Seng moved up into resistance around 21150 during the day session and managed to hold the gains overnight. Will be watching for an early flush lower and then a deeper move up into the resistance zone. The Nikkei moved up into resistance yesterday before closing of session highs. Price hovered below 27445 resistance and is edging lower into the Nikkei open. Watching for a weaker open and then ramp up into resistance before fading later in the session. The DAX Index moved up into resistance at 14595 where is closed. Expecting to see some sellers defend the level and potentially some profit taking tonight once Europe kicks off. Do not expect a selloff but rather a range bound choppy session to end the month. UK 100 Index also hovered around major resistance at 7606 which it has held many times in the past. Expecting to see the level hold tonight and for a lower high to pressure the buyers although the trend up has been very contained unlike the DAX, so I do not expect a selloff…just choppy action to end out the month so would approach the session with a scalping mindset.

Cryptos ramped higher from the start of the Asian session yesterday. Price action held off lows and squeezed out many sellers who had built up and also brought in some buyers who have been on the sidelines. I expect that the move was due to Indexes finding more buyers in a risk on tone the last few days. Bitcoin moved up through 30700 and spiked above 32000 as stops were triggered. I expect that price is extended but may still flush up into 32300. Ethereum has pushed up into 2002 where I expect that it may see some selling pressure hold the action down.

Spot Gold continued to find buying support as the USD was under more pressure. I expect that the selling into the USD is running out of momentum so setting the stage for a correction higher. This will mean Gold will come under pressure which is the reason we may not seen a break above 1864. Crude Oil continues to move up as economic data remains strong meaning higher demand while getting support from USD weakness. ‘The Trend is Your Friend’ is the best approach for now but I would like to see some buyers squeezed out prior to any longs. USD Index was held down yesterday and may continue to be pressured today. I expect that sellers are running out of steam (MACDs moves lower are lessening) and we may see a rally soon.

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SPI200 Index