Yesterday opened with a large gap to the upside and we had a large bullish candle on London open due to positive news coming from the US/China trade talks. Currently HTF/MTF market structure is still bullish and we can continue to put more weight on long trades.
Trading Plan
Today we have high impact news at 1:30 GMT so its recommend to be closed out of positions at this time or at the very least have tight risk management in place, bearing in mind during high impact new events liquidity is much lower therefore you can expect some slippage on stop loss orders.
Today the daily open was in the upper quartile of the previous day price range, based on our statistical analysis we can expect yesterdays high to be traded above.
Yesterdays volume profile was a “P” shape, so we could expect the pdVAL to be defended if price trades to that level.
Todays levels of support on the S&P 500 where price may, or may not give a reaction are:
- 5,825 – pdVAL, aPOC, 0.75 fib retracement.
- 5,805 – Liquidity sweep in to previous day equilibrium. If we see a reaction at this area be aware of a potential rejection at the support/resistance zone at 5,814 – 5,820.
- 5,771 – pmHigh and single print fill.
- 5,707 – pwVAH and aPoc.
Todays levels of Resistance on the S&P 500 where price may, or may not give a reaction are:
- 5,902 – Untested daily value and single print fill.
- 6,000 – Untested daily value.
High Impact News events to be aware of:
- 13:30 GMT – CPI / Core Inflation Rate.
The above levels are intended as areas of interest only, they are not in anyway financial advice and a valid entry trigger, stop loss placement and target needs to be considered before entering any position.