Trading Plan for Friday, May 24th 2024

Trading Plan for Friday, May 24th, 2024

Market Sentiment: Uncertain, as the market has transitioned from a rally to a short-term dip. Bulls are attempting to defend key supports, while bears are looking for further downside continuation.

Key Supports

• Immediate Supports: 5265 (major), 5253 (major)

• Major Supports: 5230-35 (major), 5202 (major), 5177 (major)

Key Resistances

• Near-term Resistance: 5293 (major), 5302 (major)

• Major Resistances: 5317 (major), 5380 (major), 5400 (major)

Trading Strategy

• Post-Rally Dip: The market is now in a short-term dip after a prolonged rally. Exercise caution and avoid chasing longs or shorts.

• Long Opportunities: Look for a bounce and reclaim above 5274 for potential long entries. Consider failed breakdowns at 5265 or a dip and reclaim at 5230-35 for more aggressive long entries.

• Short Opportunities: Consider shorts at 5317 (if the market rallies strongly) or on failed breakdowns below 5265 after a bounce/retest. Exercise caution and take profits level-to-level.

• Focus on Reactions and Price Discovery: Wait for confirmation signals and clear reactions at key levels before committing to any trades.

Bull Case

• Defending Support: Bulls need to defend the 5265-72 zone to prevent further downside and maintain the possibility of a bounce.

• Reclaiming Resistances: If bulls reclaim the 5293 and 5302 levels, the dip could be considered over, opening up a potential move towards the previous highs.

Bear Case

• Breakdown Signals: A convincing break below 5265 could trigger further selling, targeting 5230-35 and potentially deeper levels. Look for bounces/failed breakdowns at these levels for potential short entries.

News: Top Stories for May 24th, 2024

📈 U.S. Durable Goods Orders: The latest data shows an unexpected increase in April, suggesting resilience in manufacturing despite economic headwinds.

🌍 Geopolitical Tensions and Their Economic Impacts: Recent surveys indicate that geopolitical risks are a top concern for global family offices, with significant implications for asset allocations in North America and Asia Pacific.

🛡️ Shifts in Safe Haven Assets: In an environment of growing debt concerns, investors are increasingly turning to gold over traditional government bonds, marking a significant shift in safe haven preferences.

🌎 Climate Change and Economic Impact: A session at the 10th World Water Forum highlighted the severe economic repercussions of climate change and water scarcity in Laos, underscoring the urgent need for sustainable water management solutions.

📊 Global PMI Data Releases: The release of the S&P Global Services and Manufacturing PMI reports provides critical insights into the economic conditions of the services and manufacturing sectors, which are key indicators of overall economic health.