Dow Jones Industrial Average Futures tested last month’s high at 13374 and backed away on Friday. If we cannot beat this level today we should see prices drift back to a first target of 13227 on profit taking. This may mark the low for today so watch for a bounce from here. Worth covering shorts on the approach therefore and buying in to longs, but with a stop loss below 13190. A break below here could trigger further selling pressure with 13134 likely to be tested before we see the gap filled and good support
in the 13078/58 area. If this area is tested it should offer an excellent buying opportunity.
13374/77 remains tricky resistance today but shorts here will need a stop loss above the 18 month trend line resistance at 13405. We look to buy back in to longs on a break above here with potential for continued strength then towards a new target of 13530.
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