Truth Hour
Trump’s five-day ceasefire announced Monday enters its final 48 hours. Concrete progress remains elusive, but the market wants to believe.
Will POTUS deliver good news in his speech? By announcing Monday that US strikes on Iranian energy infrastructure would pause, Donald Trump rekindled hopes for a quick resolution to the Iranian conflict, but markets remain hungry for more…
On one hand, because Iranians keep denying any direct talks with the United States, and on the other, because Trump’s reassuring statements (lacking confirmation through real progress) sound increasingly hollow.
To save face by Friday evening, the US president could still pull a rabbit out of his hat at the last minute, throwing markets a bone while waiting for better days…
The retrospective
Optimistic at the open, buyers tried unsuccessfully to push above the symbolic 47,000-point threshold[1]. The short sellers’ counterattack toward the symbolic 46,500-point level hit its mark[2].
In the second half of the session, buyers still managed to reach daily resistance 1[3]; a sign that perhaps the market needs to bounce more before continuing its underlying bearish trend.
Today's trading plan
Still in control, short sellers have so far taken profits at the monthly middle S4 and allowed the market to bounce.
Despite the strength of the decline, sellers remain relatively cautious and buyers relatively optimistic, which suggests the bearish movement still has potential.
In this context, I continue to favor short trades, but with quick profit-taking on key intraday levels as long as buyers haven’t really been trapped on the current bounce (which could happen above the 47,205-point resistance).
Happy trading!
Maxime holds two master’s degrees from the SKEMA Business School and FFBC. As founder and editor-in-chief of NewTrading.fr, he writes daily about financial trading.
Good signs
Strike zone
One Track Hides Another