Tuesday, March 18, 2008

Tuesday ( 18/3/2008)

Tuesday - 18 March 2008
9.15 a.m. - Malaysia time zone

Yesterday the market open at 3580 ( June's contract) and closed at 3600. The highest was at 3604 and the lowest was at 3515. In actuality, the market closed lower but it was a white bar.
Yesterday, there were 2 clear patterns of inverted head and shoulder (or 3 bottoms) which formed at 11.30a.m. to 12.00 p.m.Another pattern was the 3 tops which formed at 3.30 p.m. Those who had taken the short position would have been making quite a profits then.


I would still say, in mid term, the market is in the bearish situation, but a very short term would suggest that the market is in bullish sentiment now. If the market manages to break the level between 3531 to 3510 and below or open below 3532 the market would retrace further down. So my forecast are as follows ;

1) If the market opens between 3548 to 3607, put a buy after the market falls to the level of between 11 to 25 points after opening. Donot forget to put a stop loss of about 15 to 20 points. The best is, after opening, the market goes up a little bit and then starts to retrace down to the suggested level.If , after opening, the level of retracement ( between 11 to 25 points ) breaks the level 3532, just be careful, the market may retrace further down.If this happens, just stay away from the market a little a while or you can decide to sell if you like.There is a strategy to sell here because the risk is considered quite high here ( if not sure , just ignore for a moment )
2)If the market opens between 3608 to 3630, let the market falls a little bit and later if it goes up 3 to 5 points after the opening, put a buy here. Put a stop loss here. If you make a small profits, just sell!
3) If the market opens above 3633, the market may ends in a black bar today or at least the market may retrace down in the early part of the trading.
4) If the market opens between 3510 to 3531, let the market goes up to the level of between 12 to 20 points (after opening off course,) and then place a short here. Don't forget stop loss. If the market beats down the level 3510 the market may retrace down further down.
5) If the market opens below 3510 , it may retrace further down but it could be a white bar at the end of the day
6) As usual , if you do not make any entry after opening, you can look for a clear pattern of trendlines to enter the market or look for a "calm" situation normally around 11.30 a.m. or 3.30 p.m. ( There is another strategy to be used here )

Well, this is my speculation of the day, I may be right and I may be wrong. If you are not sure, contact your librarian...oops...your broker.
Hav a nais treding!