Friday, the market made a higher high and a higher close. The market filled the gap left from February 22 and held above the key 1327.50 level. This is a key level because of the supply that came in on Feb 22 and March 1. The market’s ability to hold this level shows resiliance and a general persistance of buyers.
We did see some selling come in on Friday afternoon. This was likely traders just flattening out before the weekend. We may see a test of Friday’s lows at around the 1324 level. If it occurs early in the US morning session, it would set up a potential buy opportunity. Friday’s high at 1333.75 is likely to be a resistance level today.
Above Friday’s high is the 1338.00 high and below the 1325 level is an outstanding gap at 1319.50-1317.75.
Watch the volume and market internals carefully on any pushes through these key references levels for indications that the move will continue or stall. It’s a Monday, after all.
I’ll be doing a live trading session with Tom Williams and Gavin Holmes today. It’s free: click here to join the event.
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