Daily trading plan, where is the market going?

Daily Trading set up, first we look at the general trend and what is occurring now.

First the Pink Square that is outlined is showing a consolidated range.  Price has been chopping traders out in this zone for weeks.  Trading days have been moving from 20-40 points with very fast moves of 5- 10 points occurring with in fifteen minutes.  This has been painful for quite a number of traders waiting for the sell off only to be robbed as Price approaches the 200MA.

I have noted on the chart Fib extensions along with projection zones.  The small zones above the present price action are revealing some fairly easy buy side targets.  With Europe falling into the back and forth around Greece exit – Grexit, and the oil squeeze by the Saudis against Russia, we can expect these large moves as risk on, risk off, QE support and central bank purchases of equities is increasing.  Read more about it here: Collision of Outliers.

Remember it is not often that markets run up or down in a straight line so there will be some consolidation in the present price levels looking for news, QE and or market makers to move in when no one is looking.  Use your stops in this and don’t trade open positions.

On the Downside I have noted a few areas of support which are open gaps based on a regular trading day, on this 24 hour chart.  Breaking down to the previous swing low is also an easy target that would fill two open gaps.

Daily Price Action Projection for Daily Trading plan February 4, 2015

This is where the fun starts. The Trading set up for tomorrow that we are looking for is a bounce equivalent to 50% of the previous days price action with a maximum of 23 points retraced from yesterdays close.  From here we are looking for a buyers market in control with a new high coming.  Support on 2032 then a continuation of the trend.  Buy at 2032 watch for the 10 -20 point run and then back down 10.

The expected range is 16 for a consolidated range day, 23 points for a mid range trade day and 41 points for a volatile range day.  There is a chance that we could put in a doji as the market consolidates more before a break of the channel.  This could be 2 or three days.

Also expecting a small range day on oil as we had a volatile day setting new swing highs and giving some relief to the Canadian Dollar.