Trading Plan for Tuesday, April 30th, 2024

Trading Plan for Tuesday, April 30th, 2024

Market Sentiment: Bullish, within a consolidation period likely followed by a breakout. Exercise caution and patience with trades.

Key Supports

• Immediate Supports: 5127-30, 5121 (major), 5108

• Major Supports: 5083 (major), 5067 (major), 5039 (major)

Key Resistances

• Near-term Resistance: 5136, 5150-55 (major), 5176 (major), 5191 (major)

• Major Resistances: 5205-5208 (major), 5230, 5246 (major), 5270-75 (major)

Trading Strategy

• Consolidation Breakout: Anticipate a breakout from the current 5120-5155 consolidation range. Plan accordingly for both bull and bear breakout scenarios.

• Long Opportunities: Prioritize failed breakdowns at 5121 for potential long entries. Focus on bids within the current range and knife-catches on major supports if deep flushes occur (5067, 5039).

• Short Opportunities: Due to the potential for a strong breakout, approach shorts cautiously. The 5176 and 5191 levels offer shorting opportunities, but with increased risk in the bullish environment. Utilize level-to-level profit-taking.

• Risk Management: Implement disciplined risk management in this potentially volatile period.

Bull Case

• Holding Support: Defending the 5120 support within the current consolidation range is crucial for bulls.

• Breakout and Retest: Look for an upside breakout from the 5155 resistance area, followed by a successful retest for further confirmation.

• Targeting Higher Levels: A breakout could trigger an upward move, focusing on targets at 5176, potentially extending to 5191.

Bear Case

• Breakdown Signals: A convincing break below 5121 signals a downward move. Watch for a bounce/failed breakdown as an entry point for a short position, with level-to-level profit-taking.

News: Top Stories for April 30th, 2024

Market Dynamics and Corporate Earnings

• Global Activity: High activity with 1,300 company earnings reports expected; Federal Reserve's FOMC meeting closely watched for rate decision insights.

• Sector Highlights: Tech sector leads with major gains by Nvidia and Super Micro; Financials gain on rate cut hopes; Real Estate and Energy sectors lag.

Economic Indicators and Central Bank Decisions

• FOMC Meeting: Coming up on 5/1

• Jobs Data: Upcoming release expected to influence Fed's future decisions, especially on inflation control.

International Markets

• Asian Markets: Mixed responses with Japan's Nikkei up and Shanghai Composite down.

• European Central Bank: Anticipated to follow Fed with potential rate cuts amid inflation challenges.

Analysts' Projections and Market Sentiment

• Future Rate Cuts: Initially expected in mid-2024, now possibly delayed due to persistent high inflation.

• Investor Outlook: Cautiously optimistic but prepared for potential volatility due to uncertain monetary policy outcomes.