Well my prediction was right, the market kept strong and hit 146750 and hovered around here.. then it went up and is now at 147000 and still climbing. I left quite a bit on the table but it’s always best to be safe than sorry!

Lesson learnt.. trail the stop and the market to run.

Well, this is probably going to be my last trading day before the New Year. I have just put on one position and that was a long at 146275 as the market retraced from a swing high and hit the 5 day MA.

I was aware of overhead resistance at around 146500 which is also the 200 day MA. As it bounced up, I saw it struggle around 146600 and the stochastics this time round on the 5 mins was weaker than the previous dip (despite being a higher top)… ie some negative divergence.

The 15 min charts however, look good for a long all the way. I was cautious though and I closed it out at 146600 for a 13 price profit.

At least I ended up the last trading day with a profit

ps. As I write, the 146600 level is breached.. not sure if it can hold here but time will tell! Next obvious target if it is going up is 146750 and then 147000.

I got back home today and look at the market as I always do. It was stuck in a choppy range.. it would break out of this but I wasn’t sure which way it would move. There were some opportunities to short it was it went up the to the 5 day MA as it seemed to have been contained the price action.

I was thinking that the price action would break down but there was a clue in that the stochastics were showing positive divergence.

The price action did break below the previous low but soon shot up and then bounced up and above the 5 day MA. An entry would have been to enter it as it sat on the 5 day MA and moved off it.

My entry was a short which got stopped out..