Trading Plan for Tuesday, April 9, 2024

Trading Plan for Tuesday, April 9th, 2024

Market Sentiment: Bullish, consolidating within a tight range. Expect a breakout with the potential for increased volatility.

Key Supports

• Immediate Supports: 5246, 5232-35 (major), 5221, 5212, 5207 (major).

• Major Supports: 5196-98 (major), 5181, 5172 (major), 5155 (major), and many more.

Key Resistances

• Near-term Resistance: 5256, 5262 (major), 5274, 5285 (major), 5294, 5302 (major).

• Major Resistances: 5308 (major), 5327-30 (major), 5348 (major), 5379 (major), and others.

Trading Strategy

• Rangebound Consolidation: ES is forming a tight base between 5235-5263. Exercise patience and prioritize either tactical adds on support tests/failed breakdowns OR hold a runner position with the trend.

• Long Opportunities: Look for bids at 5246 and 5232-35 (prioritize the latter). Consider dips below 5232 to 5207 or 5196-98, especially if followed by reclaims. Stick to level-to-level profit-taking.

• Short Opportunities: While avoiding counter-trend shorts is generally advised, those inclined may consider potential shorts at 5285 (red downtrend resistance) or 5302-08 for dips.

Bull Case

• Holding Support: Bulls maintain control as long as the 5232-35 zone holds. If it does, consolidation continues, likely forming a bullish triangle for another push toward 5274, 5285, and potentially 5302-08.

• Adding on Strength: If ES bases above 5246 (with dips below recovered) while staying under 5263, consider potential adds.

Bear Case

• Breakdown Signals: A failure of 5232 triggers the bear case. Remember, most breakdowns are traps, so look for a retest and failed breakdown of 5232 first, then consider shorts with level-to-level targets.

News: Top Stories for April 9th, 2024

Economic Indicators

• CPI and PPI data in focus for inflation insights.

• Bond market signals potential for stable interest rates.

Corporate Earnings

• Big banks to release quarterly reports.

Interest Rate Decisions

• Bank of Canada and ECB announcements could impact FX and indices.

EU Joint Borrowing Plan

• Success of the EU plan could inform future fiscal tools.

Corporate Events

• Blackstone's potential buyout of L’Occitane.

Reminder: Expect a breakout from the current tight range, potentially with volatility. Focus on reacting to price action, prioritizing risk management.