Trade Plan, March 31st
Bulls Were Indeed Back
Hey Traders,
I hope you all enjoyed the trading day!
A solid day for the levels and intraday moves.
Let’s recap the day followed up with a plan for Friday!
Recap of Thursday.
Let’s grab a quote from the plan …
“Sellers got themselves too short at the LOD resulting in a poor low at 4032. Failure to clean up this low would indicate weak sellers once more. A clear area of confluence would be the 4048-4050 spot as 4048 was the IB high and 4050 is the monthly VAH. If I am bullish, I want to see continued acceptance above 4050 to push higher.”
During the Asian session, we were seeing price consolidating and accepting > 4050, which, as per the plan, was what we wanted to see to be bullish. We also saw a failure to clean up that poor low, which told us sellers were fairly weak. The 4060 had acted as resistance a couple times, once at the close of Wednesday’s session and once more during Globex. At least for me, I like to see rejection of levels once, twice at most. The more they are rejected, the weaker they become. Once I see they reject multiple times, I want to see them act as support once above. This was effectively what occurred just before the European session opened in regards to the 4060 level. Once we were holding above 4060, a test of 4082 was in the works. We had noted some slight resistance at 4067-4072, which stalled the auction for a bit and was a good spot to scale out of longs. Once this spot was breached, 4082 traded swiftly.
Spooz opened for cash session business at 4085, which was also the OVN high (confluence!) We were quite near that 4090-4100, which I urged to be cautious with longs there. I noticed a failure to bid above that 4082, which is a weekly level. Hence, I tried shorts around there a few times. We got a few successful trims and a few stops at breakeven. All in all, my bias was we would see a dip if we failed to build above 4083, as I stated in the telegram. I got in short at 4081 leaning against the 4082-4083 spot, and the dip I had anticipated finally came. I wanted to scale out the core of my position at the OVN single prints at 4060-4062. As I always say, single prints are where traders may be trapped and hence, they act as support / resistance. We filled the gap to the tick, failed to accept within the prior day’s range, resulting in a bounce.
Spooz closed for cash session business at 4081.
Market Structure.