Trading Plan for Wednesday, May 8th 2024

Trading Plan for Wednesday, May 8th, 2024

Market Sentiment: Bullish, but increasingly cautious in the overbought market. Consolidation is ongoing, and a deeper pullback is likely before further advances. Maintain disciplined risk management.

Key Supports

• Immediate Supports: 5209 (major), 5202, 5188-91 (major)

• Major Supports: 5143-36 (major), 5067-69 (major),

Key Resistances

• Near-term Resistance: 5224 (major), 5246 (major), 5265-70 (major)

• Major Resistances: 5302-06 (major), 5328-30 (major)

Trading Strategy

• Post-Breakout Dip Anticipated: The market is overdue for a healthy pullback after the recent strong surge.

• Long Opportunities: Focus on failed breakdowns at 5202 or 5188-91 for long entries. In the event of a deeper pullback, consider buying the retest of the breakout zone at 5143-36 or knife-catches at 5168 for quick scalps.

• Short Opportunities: Look for back-tests of 5246 or 5265-70 for short entries, targeting level-to-level profits. Proceed with extreme caution and be ready to cut losses quickly. Remember, shorting against strength in a bull market is inherently risky.

• Focus on Levels and Patience: Trade the provided support and resistance levels rigorously. Let price action develop, be patient, and avoid emotional trading.

Bull Case

• Holding Support: Defending the 5143-36 breakout zone remains crucial for maintaining bullish momentum. Holding above this level would indicate a healthy dip and a potential continuation higher.

• Rebase and Bounce: A period of consolidation around 5190-5224 and a rebound off these supports would set the stage for further advances, potentially targeting 5246, then 5265-70.

Bear Case

• Breakdown Signals: A convincing break below 5188-91 would signal a potential pullback and could lead to a retest of the 5143-36 breakout zone. Monitor bounces/failed breakdowns at these levels for potential short entries.

News: Top Stories for May 8th, 2024

Global Stock Market Trends:

• Varied Performance: Asian markets show resilience despite Nikkei 225 drop, influenced by mixed corporate news.

• U.S. Economic Indicators: U.S. jobs report and Fed's interest rate decisions continue to influence global markets positively.

• Geopolitical Tensions: Market responses to geopolitical unrest remain muted, highlighting diversified global economies' resilience.

Company Earnings and Forecasts:

• Earnings Performance: Uber reports Q1 loss; Thomson Reuters shows strong revenue growth.

• Financial Forecasts: Taboola expects significant YoY growth; Thomson Reuters adjusts full-year outlook.

• Sector-Specific Insights: Technology and financial services sectors demonstrate strong growth potential despite operational losses.

Analysts' Perspectives:

• Setting Market Expectations: Analysts forecast earnings based on economic indicators, trends, and company guidance.

• Implications for Investors: Earnings reports influence market sentiment and investor confidence, impacting stock prices.

Impact on Currency Values:

• Political Events: Geopolitical tensions historically impact currency fluctuations, yet recent responses remain subdued, reflecting diversified global markets' resilience.