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Week Ahead forecast for stock investing | day trading
Patel
(8/24/2009 7:02:10 AM)
Last week Nasdaq shown some improvement and breakout double top but 2030 - 2045 is a strong resistance zone, there are lot of supply that’s need to clear and
we need it close above 2045 for new buying. Last week stock market movement indicating distribution going on so best idea is close all long position near 2030-2045 and in case market close above 2045 re-enter back that way you can book profit and if breakout happen you can ride back or you can re-enter long near 1900 , at this stage this is a best strategy to save profit and make good money in the stock market because stock market looks over bought and closer to major strong resistance (supply zone) of course still we not get any sell signal. Day trader and investor need to keep eye on moving averages, because at present moving averages are working best as a support and resistance.
For this week our important resistance are 2030 / 2045 and above that 2147 and supports are 1949 and below that 1897. If Nasdaq broke support 1949 investor can enter short with 20 point stop loss and if breakout 2045 investor can enter long with target 2271.
Average Directional Movement Index (ADX) and stochastic (STO) telling market turn negative or stay side way.
This week you need to watch Consumer Confidence, Durable Goods Orders, New Home Sales, Jobless claims, GDP and Consumer Sentiment. Consumer Confidence and GDP going to play important roll so for day trading or stock trading, including penny stock trading you need to stay alert.
Using this forecast you can plan your stock investing, stock trading or day trading strategies.
To protect your gain and capital stop loss is very important
Long term investor and Day trader need to keep eye on strong Support Resistance
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