Trading Plan for Thursday, March 21st, 2024

Trading Plan for Thursday, March 21st, 2024

Market Sentiment: Cautious, price discovery after breakout

Weekly Volatility Risk: High (potentially elevated due to price discovery post-breakout)

Supports to Watch:

• Immediate Supports: 5275-80 (major), 5266-68, 5260, 5251 (major), 5246, 5236, 5231, 5221-26 (major), 5217, 5212 (major), 5200-02 (major), 5196, 5189-91 (major) ,5178, 5169 (major), 5162, 5155 (major), 5147, 5136 (major), 5126-29 (major), 5116, 5109, 5103 (major), 5095, 5091, 5079-82 (major)

Resistances to Monitor:

• Key Resistances: 5285, 5295-5300 (major), 5315 (major), 5330 (major), 5339, 5345, 5352 5360, 5369, 5376-81 (major), 5389, 5405, 5423, 5428-32 (major)

Trading Strategy: Price Discovery Mode

• Post-Breakout Caution: The parabolic rally yesterday makes today a less favorable environment for aggressive trading. Exercise caution, as setups are likely to be less reliable. Prioritize capital preservation.

• Long Opportunities: Watch for potential long entries at 5275-80 or after a dip and reclaim (to 5273 or 5268). Target a retest of the 5295 resistance if we haven't tagged it yet. The backtest of the triangle breakout zone at 5251-46 is interesting but carries more risk.

• Short Opportunities: Counter-trend shorting on strong up moves carries significant risk. Use extreme caution if considering shorts near major resistances.

• Focus on Reactions: Don't force trades, be patient, and react to price action. Let price discovery unfold after the breakout.

Bull Case

• Breakout Continuation: The triangle breakout, as long as the 5251-47 zone holds, targets a move towards 5295-5300, then 5315 and potentially up to 5330.

• Basing and Building: Bulls could base above 5275 after a bullish leg, creating the potential for further upside moves.

Bear Case

• Breakdown Signals: Breakdown below 5251-47 could trigger selling pressure. Watch for shorting opportunities on failed breakdowns or bounces. Exercise patience as these setups often involve traps.

News: Top Stories for March 21st, 2024

• March 2024 Market Outlook: Analysts provide insights and forecasts on the global economy, equities, interest rates, and upcoming financial events.

• Corporate Earnings Updates: Companies like Borregaard ASA and Affimed N.V. release their financial reports, detailing performance and future guidance.

• Bank of America Reporting Schedule: Investors have access to the financial reporting dates for Bank of America in 2024.

• AI and Market Sentiment Some analysts express skepticism about the sustainability of the AI-driven rally and the extent to which it reflects actual revenue growth.

• Global Economic Developments: Central banks in Switzerland and Russia make interest rate adjustments, impacting currency markets.

• Financial Trends for 2024: Focus on sustainable investing, digital assets, AI and automation, cybersecurity, and financial literacy.

Remember: The market is undergoing price discovery after the breakout. Be adaptable, manage risk, and react to price action rather than predicting.