I have a busy schedule this morning so will not be able to post charts and thoughts in depth. However, I did want to write just a quick snippet given yesterdays trading. Bottom line, we have seen a meaningful base pattern and breakout in Australia as per my recent trading plan and posts. Yesterdays action was very strong indeed with genuine momentum and size on the order book. This was not a short squeeze but genuine buying straight from the word go. You have to have strategies in place to join this move higher in coming days with stops below yesterdays low (cash or futures). I am not sure how high this move will go but for now focus on this new uptrend. My target zone in the low 4000s worked a treat and now we are clearly seeing a breakout from a sideways base pattern. What more could you ask for?
I will try and posts charts later in the day.
Key SPI levels today:
Support 4120, 4140/45
Resistance 4180, 4200
I will be looking for any move down to the SYCOMM lows of 4120 to get long. We may not be so fortunate so I will also be looking to join any initial momentum should it appear again this am. Watch that order book. Yesterday was the finest example of the need for good tape reading skills. The order book and market depth told you everything you needed to know.