Please read the Australian Index Weekly Report before proceeding....
SPI Range bound between Quarterly support @ 5493 and 6026.
Last Week the SPI consolidated in a 5-day sideways pattern, so I'm are looking for a breakout of the range and move into a 2-3 day trending period favouring upside, with the potential to move as highs as 5921 if US markets move higher on Monday (read US Weekly Report)
Friday’s trading was about trading the long side and looking for the Upside Gap to close @ 5638. When price opened below 5586 this pushed price down before a late short-covering rally around the R44 low reversal pattern
Today the gap @ 5638 will close and we are looking for further gains towards the 5-day highs @ 5702. (First target the Weekly highs @ 5686)
Around 5638 or R44 Spiral top could have some intra-day resistance before pushing higher on Monday, hopefully from an R44 low...
Support 5602
Two plays today:- it rises upwards from 5602 into an R44 top and then just continues higher...
Or the best set-up is a failure around 5638 and trading longs from an R44 low or Support
I'll be looking to trade around support with the view the R44 will complete upwards, and it might not come back down...
I also understand the price is below the Weekly 50% level (bearish) and if it's trading below Support (5-day 50%) the entire Upside move on Monday is open to Risk.
Note:I will be changing my Blog posts to a lunchtime and afternoon recap of trading instead of multiple posts.
On many occasions once the market settles into lunchtime there are often trading patterns that can provide high probability afternoon set-ups using spiral points and timeframe levels.
SPI Trading Recap posts:- 12.20 and 15:20
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