1/4 Trading Plan - Last Week Recap and Thursday Trading Plan

📊 Market Sentiment: Cautiously Watchful

Market focus is on key supports at 4746 and 4738 after a recent pullback. The cautious watch is due to the possibility of further downtrend or stabilization at these levels, determining the short-term market direction.

📝 Recap: End-of-Day Movement

The market ended with a strategic long attempt at key 4744 support, indicating a critical juncture. Traders are closely monitoring 4746 and 4738, understanding that failure here could lead to a deeper descent, with eyes set on 4705-08 as the next major support level.

🌜 The Markets Overnight

• Asia: Down

• Europe: Up slightly

• US Index Futures: Down slightly

• Crude Oil: Up

• Dollar: Down slightly

• Yields: Up significantly

• Crypto: Up

🌏 Major Global Catalysts

The Federal Reserve's interest rate policy is a central focus, with potential rate cuts sparking market optimism. The economic outlook remains mixed amidst geopolitical tensions and emerging market developments. Technology and AI continue influencing market trends.

📷 Snapshot

• Daily Data Sentiment Analysis: Neutral to bearish EMA readings.

• 4-Hour Data Sentiment Analysis: Bearish sentiment is noted.

📉 Support Levels

Key supports today include 4746, 4738, down to 4628-30. The market's reaction to these levels could signal the next move, with 4738 being especially crucial for determining the day's trend.

📈 Resistance Levels

Resistance to watch for includes 4767-71 as a major hurdle, followed by higher levels up to 4906-08. A recovery could see tests of these zones, with 4767-71, previously a support, now a critical resistance.

📝 Trading Plan

• Bull Case: Bulls aim for stabilization and recovery at 4746, targeting 4767-71 and beyond. A successful defense could lead to retests of 4795 and 4840 zones.

• Bear Case: Bears watch for a break below 4738 to confirm further downside, with 4705-08 as a potential target. Breakdown trades are high risk and require precise execution.

• Today's Strategy: Observing 4746 and 4738 for early signals. Long positions are considered at these supports with a cautious approach, and bearish scenarios are prepared for if these levels break.

Disclosure

This is not financial advice and is for informational purposes only. Consult a professional financial advisor before making any trading decisions. Strategy and market sentiment are subject to change.