Trading Plan for Friday, April 19th, 2024
Trading Plan for Friday, April 19th, 2024
Market Sentiment: Uncertain, with bulls and bears battling at the critical 5045 support zone. A decisive break in either direction will set the tone for the next market move.
Key Supports
Immediate Supports: 5044-46 (major), 5039, 5033
Major Supports: 5020, 5013 (major), 5000, 4990-95 (major), 4959 (major), 4937 (major)
Key Resistances
Near-term Resistance: 5054 (major), 5066, 5077-5082 (major)
Major Resistances: 5112-5115 (major), 5150-55 (major), 5177-80 (major), 5203 (major)
Trading Strategy
Focus on the 5045 Zone: This zone has become a battleground. Observe closely for breakouts or breakdowns, as these will trigger the next directional move.
Long Opportunities: Due to the choppy nature of the 5045 zone, direct bids are less reliable. Consider bids with a failed breakdown at 5039 or only at major support levels, particularly 5013 and 4990-95. Prioritize the knife-catch protocol for deeper longs.
Short Opportunities: Look for backtests of the 5077-82 zone, or more reliable setups at 5112-5115 and 5150-55 for shorts. A breakdown below 5039 offers short potential, targeting 5013.
Profit-Taking: On shorts, consider taking profits entirely at major levels, especially given ES's tendency to short squeeze.
Bull Case
Holding Support: Bulls need to defend the 5045 zone to maintain control.
Relief Bounce: If 5045 holds, a bounce to 5082 and potentially 5112-15 is possible, with further upside potential to 5150-55 if momentum is sustained.
Adding on Strength: Breaks and acceptance above 5054/5060 could offer opportunities for adding to long positions.
Bear Case
Breakdown Signals: A convincing break below 5039 triggers the downside move, likely heading towards 5013 and potentially 5000. As always, be wary of traps – look for a bounce/failed breakdown first, then consider shorting.
News: Top Stories for April 19th, 2024
Economic Environment
Inflation remains a factor despite a decline.
Corporate profits show resilience.
Potential for a record-breaking expansion cycle in the US.
Uncertainty surrounding persistent inflation or negative economic news.
Reminder: The market is reacting to the battle at the 5045 level. Prioritize risk management and adapt your trading strategy accordingly.
Market Sentiment: Uncertain, with bulls and bears battling at the critical 5045 support zone. A decisive break in either direction will set the tone for the next market move.
Key Supports
Immediate Supports: 5044-46 (major), 5039, 5033
Major Supports: 5020, 5013 (major), 5000, 4990-95 (major), 4959 (major), 4937 (major)
Key Resistances
Near-term Resistance: 5054 (major), 5066, 5077-5082 (major)
Major Resistances: 5112-5115 (major), 5150-55 (major), 5177-80 (major), 5203 (major)
Trading Strategy
Focus on the 5045 Zone: This zone has become a battleground. Observe closely for breakouts or breakdowns, as these will trigger the next directional move.
Long Opportunities: Due to the choppy nature of the 5045 zone, direct bids are less reliable. Consider bids with a failed breakdown at 5039 or only at major support levels, particularly 5013 and 4990-95. Prioritize the knife-catch protocol for deeper longs.
Short Opportunities: Look for backtests of the 5077-82 zone, or more reliable setups at 5112-5115 and 5150-55 for shorts. A breakdown below 5039 offers short potential, targeting 5013.
Profit-Taking: On shorts, consider taking profits entirely at major levels, especially given ES's tendency to short squeeze.
Bull Case
Holding Support: Bulls need to defend the 5045 zone to maintain control.
Relief Bounce: If 5045 holds, a bounce to 5082 and potentially 5112-15 is possible, with further upside potential to 5150-55 if momentum is sustained.
Adding on Strength: Breaks and acceptance above 5054/5060 could offer opportunities for adding to long positions.
Bear Case
Breakdown Signals: A convincing break below 5039 triggers the downside move, likely heading towards 5013 and potentially 5000. As always, be wary of traps – look for a bounce/failed breakdown first, then consider shorting.
News: Top Stories for April 19th, 2024
Economic Environment
Inflation remains a factor despite a decline.
Corporate profits show resilience.
Potential for a record-breaking expansion cycle in the US.
Uncertainty surrounding persistent inflation or negative economic news.
Reminder: The market is reacting to the battle at the 5045 level. Prioritize risk management and adapt your trading strategy accordingly.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.