The SPI is indicated at 4821 this morning after last nights sell off. Thus we are coming right into my support levels posted several days ago: http://swingtradersedge.blogspot.com/2011_04_12_archive.html. I have been stressing the importance of patience for postion traders and now I believe it is the time to consider buy setups in Australia once more. The key as ever is confirmation so look for hammers or somekind of bullish turnaround today/the next few days before going long.
SPI 60mins:
4800 is an open gap as well as the 38.2 retrace level
XJO Daily:
Todays sell off will bring price right back into the upward sloping moving averages.
Scenarios I am following today:
i) Gap strategy- wait for the first 15mins to trade and mark the highs and lows of the range. Buy a 5min closing candle above this range and short a 5min closing candle below this range
ii) Look for scalp longs out of 4800 with tight stops. This is a support play with tight risk. If 4800 breaks, look to potentially short and join the momentum lower for an intraday trade only
Bottom line, I think today could be a gap down, test of 4810/4805, and then a potential reversal day higher. The key is waiting for short term confirmation. I must stress the short term trend is down thus keep risk tight on the long side.
Thanks
Austin
