Wednesday, May 18, 2011

Pre market analysis 5-18-11 Wednesday


News: FOMC minutes @ 2PM
Trade plan and Price action analysis: (Price action) ES put value in lower yesterday testing  the lower balance area we have been in recently. It seems as if responsive buyers stepped in and we may be heading back into the range. We had a bullish U-turn candle stick which is a reversal candle at the lows of the range. On the higher time frame charts price is just floating around in the middle of a channel not really giving any clue as to where it wants to go. Globex has put in value higher up on yesterday's session giving us a bullish tone to the market before the cash open. We are currently trading back up into the bigger balance area at the moment. The bottom line is we are at the bottom of a balance area and could see higher prices today.
(Trade plan) The plan for today is to be a buyer / seller at my levels as im expecting a mostly balanced session. We have FOMC out at 2PM and im not expecting too much to happen before that is released. With the bullish macro structure we currently have in globex session we may see higher prices today. If we can manage to take out the globex highs i will be less inclined to get short at my levels above but i will still be on the lookout for rotations and will take these trades as scalps at best. I will be patient and wait for the market to set up in the AM open before i take any trades. I want to see who is in control off the open. I am still busy with work so i will try and trade as much as i can today but i will not trade if i am stressed out.



No comments:

Post a Comment