1/9 Trading Plan - Monday Recap and Tuesday Trading Plan

📊 Market Sentiment: Neutral to Bullish

The market remains vigilant as it navigates through complex geopolitical and economic landscapes. Ongoing geopolitical issues and economic forecasts are at the forefront of investors' minds, influencing market movements and strategies.

📝 Today's Recap

A period of lower conviction trading is expected in the wake of the rally. The market might see a flag formation above 4781, targeting higher levels with potential dips. If 4781 fails, a more extensive retracement of the rally may be on the cards.

🌍 Global Financial and Economic News

Geopolitical Tensions: The prolonged Russia-Ukraine conflict and instability in the Middle East are adding to global market volatility, affecting shipping routes, and contributing to inflationary pressures.

US Economic Outlook: The US economy's resilience in avoiding a recession in 2023 sets a cautiously optimistic tone for 2024, albeit with expectations of a slowdown.

Global Political Risks: Significant elections across key economies, including the US presidential race, are casting a shadow of uncertainty over market dynamics.

Interest Rate Environment: The shift in interest rate policies is prompting investors to re-evaluate and personalize their investment strategies in anticipation of changing yield landscapes.

Global Economic Slowdown: The UN's projection of a slowdown in global growth for 2024, due to a confluence of factors, is shaping cautious investment approaches.

📉 Support Levels to Watch

The market is closely monitoring supports at 4782 and 4757-59, with an eye on major levels down to 4592. The response to these supports, especially after the recent rally, will be crucial in determining the market's direction in the short term.

📈 Resistance Levels to Consider

Key resistance levels include 4795-98 and 4816-20, with major levels extending up to 4910-15. The market's reaction to these resistances, particularly in the context of recent bullish momentum, will be telling of its strength and sustainability.

📝 Trading Plan for Tuesday

Bull Case: The market appears to be in a consolidation phase, potentially forming a bull flag. Bulls aim to maintain control above 4736, with a focus on consolidating gains and targeting higher resistances.

Bear Case: The bear scenario involves a retracement of the recent rally, with a watchful eye on the 4781 level. Breakdown trades below key supports are on the radar, but they come with high risk and require skillful execution.

🛑 Disclosure

This analysis is for educational purposes only and is not financial advice. Market conditions are dynamic and subject to rapid changes. Always consult with a professional financial advisor before making trading decisions, and remain adaptable in the face of market volatility.