Reality check
Convinced the Iranian conflict would be short-lived at the start of the week, the market is slowly opening its eyes to the gravity of the situation as the weekend approaches.
Operation “Epic Fury” certainly allowed the United States to confirm their military supremacy, but nearly a week after the first strikes, this situation is still far from resolved.
Unable to retaliate seriously on the military front, Iran is shifting the conflict to other battlegrounds with one objective: hit the United States and their regional allies in the wallet.
Strait of Hormuz closed, production infrastructure out of service, oil prices soaring. Iran knows their best chance is to destabilize the global economy by sending energy prices through the roof, and in this game, time is on their side.
The retrospective
Trapped at the open by the false breakout of weekly support 1 [1], then by a failed rebound attempt toward monthly Support 1 [2], buyers handed control to short sellers whose offensive today toward the low of 47,682 points succeeded [2].
Under the effect of profit-taking from short sellers and entry of new buyers, a rebound then took shape, but failed to reach weekly support 2 [4].
My trading plan for today
This content is not investment advice. This trading plan is shared purely for educational purposes to give you a glimpse into the preparation and reasoning of one trading veteran among others.
The 47,682 point target proposed in yesterday’s trading plan was reached. I took advantage of this to record a commented trade video for you (+$1,760).
The underlying trend remains bearish, but today’s opening sentiment is already much more pessimistic than recent sessions.
Profit-taking from sellers at the contact of monthly Support 2 at 47,267 points cannot be ruled out, so I won’t be looking to follow the bearish trend any further for now.
Scalping session ahead, good trades!
| MARKET CONDITIONS | |
|---|---|
| Side in control | Sellers |
| Side under pressure | Buyers |
| Bull trap | 48915 |
| Bear trap | – |
| Buyers’ target | 48134 (Support 1 mensuel) |
| Sellers’ target | 47267 (Support 2 mensuel) |
| Buyers’ killzone | – |
| Sellers’ killzone | – |
| Dominant emotion | Crainte |
| Emotion score | 5/10 |
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.
The phony war
Controlled Skid
Peace pipe