The Futures Trader's Destination for Over 25 Years

Open an Account
Call Us Free: 1-800-454-9572
Why Trade with Cannon?
  • USA
  • Canada
  • Mexico
  • United Kingdom
  • France
  • Italy
  • Spain
  • Germany
  • Australia
  • Netherlands
  • Romania
  • Belgium
  • Sweden
  • Czech Republic
  • Hungary
  • Switzerland
  • Austria
  • Portugal
  • Denmark
  • Greece
  • UAE
  • Israel
  • Jordan
  • Saudi Arabia
  • India
  • Argentina
  • Costa Rica
  • Peru
  • Chile
  • Brazil
  • China
  • Hong Kong
  • Japan
  • Russia
  • Thailand
  • South Korea
  • Taiwan
  • Philippines
  • Singapore
  • And Many More!
Countries We Accept Clients From | International Calls: 310-859-9572

3 Main Types of Trading Days | Support and Resistance Levels

Jump to a section in this post:
1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – March Corn, March Wheat, Jan Beans, March Silver
5.Economic Report for February 7, 2012

1. Market Commentary

Hello traders,

Thin volume in many markets today with SP500 pretty much closing unchanged.

Tomorrow should bring a different trading environment as we have a more than a few reports scheduled.

Here are some notes about the main types of trading days as I see it:

My opinion is that there are 3 main types of trading days.

1. Most common is two sided trading action with swings up and down – this type of trading day is most suitable using support and resistance levels along with overbought/oversold indicators such as RSI and &R.
2. Strong trending day, mostly one directional – this type of trading day is the least common, many times will happen on Mondays and maybe 3-5 times a month at most – this type of trading day is most suitable for using pull backs from the main trend to re-enter with the direction of the trend.
DMI and ADX are good studies to use for this type of trading days.
3. Slow and/ or choppy trading day – this type of trading day is best suited for taking small profits from the market by looking at FIB retracement levels and order flow.

Good question is how can one asses what type of trading day we will have while the market is still trading….I am doing some work about it and will be happy to hear feedback via email but here are some initial observations:
Was the overnight session a wide, two sided trading range? If the answer is yes, good chances for similar trading day during the primary session ( primary session is when the cash/ stock market is open)
Mondays have the highest chance for trending days
The behavior of the first hour of trading can also suggests the type of action for the rest of the day.
If the first 30 minutes have good volume, better chances for type 1 or type 2 trading days.
low volume during first 30 minutes can suggest a choppy (type 3 trading day)

2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000

Contract (Dec. 2011) SP500
(big & Mini)
Nasdaq100
(big & Mini)
Dow Jones
(big & Mini)
Mini Russell
Resistance Level 3 1348.00 2540.92 12833 836.10
Resistance Level 2 1344.15 2532.83 12810 832.50
Resistance Level 1 1341.70 2527.67 12797 829.00
Pivot Point 1337.85 2519.58 12774 825.40
Support Level 1 1335.40 2514.42 12761 821.90
Support Level 2 1331.55 2506.33 12738 818.30
Support Level 3 1329.10 2501.17 12725 814.80

3. Support & Resistance Levels for Gold, Euro, Crude Oil, and U.S. T-Bonds

Contract April. Gold March Euro Feb. Crude Oil March. Bonds
Resistance Level 3 1764.6 1.3290 99.18 144 30/32
Resistance Level 2 1752.7 1.3217 98.46 144 7/32
Resistance Level 1 1737.7 1.3174 97.81 143 28/32
Pivot Point 1725.8 1.3101 97.09 143 5/32
Support Level 1 1710.8 1.3058 96.44 142 26/32
Support Level 2 1698.9 1.2985 95.72 142 3/32
Support Level 3 1683.9 1.2942 95.07 141 24/32

4. Support & Resistance Levels for Corn, Wheat, Beans and Silver

Contract March Corn March Wheat March Beans March. Silver
Resistance Level 3 651.2 678.7 1252.92 3491.0
Resistance Level 2 648.1 673.8 1248.33 3439.0
Resistance Level 1 646.2 671.2 1240.67 3402.5
Pivot Point 643.1 666.3 1236.08 3350.5
Support Level 1 641.2 663.7 1228.4 3314.0
Support Level 2 638.1 658.8 1223.83 3262.0
Support Level 3 636.2 656.2 1216.17 3225.5


5. Economic Reports

German Industrial Production 6:00am

Fed Chairman Bernanke Testifies
10:00am

IBD/TIPP Econoic Optimism
10:00am

Consumer Credit
3:00pm

Tags: > > Posted in: Future Trading News   | Futures Broker   | Futures Trading  

Download Cannon’s new eBook, “Futures Forthright” instantly.


Quick Tip: After registering you will be emailed login information, so be sure to use an email address you have access to. If you need assistance please call us at 1-800-454-9572, a professional broker will help you through the registration process.
________
Doing Business With
See more...
Loading
Loading

Loading