[Week 09 - 2023] Trades Recap and Trade Setups

Updated: Mar 23, 2023

Hey Traders,

Friday's PCE inflation number came out hot, increasing the market worries on stronger inflation number in times to come which can push the FEDs to hike more aggressively. Risk on sentiment continues to build up in the market but the University of Michigan Consumer Sentiment still came out strong.

Do note that there is no Non-Farm Payroll next week as such all eyes will be on the ISM PMI report.

Upcoming Economic Release:

Credit: ForexFactory.com Time: +8 GMT

S&P500 Futures

S&P500 extends to support level as expected

As per our previous post, we have mentioned that a breakout confirmation of the 4066 region can spell more downside movement for the S&P500 towards the next support at 3963 which is the region where the index closed the week off at.

S&P500 remains week potentially heading to the key support level

The next level of support to look at is not far away which is at 3915 and is likely to reach with the risk off sentiment in the market. The 3815 remain a key support level as a breakout of this support can indicate a continuation of the bearish market for the equities index. However, if price manage to climb above the 4066 region, a shift to short term risk on can be assumed.

Dollar Index (DXY)

Dollar continued its strength, reaching the key resistance level

The United States Dollar Index continued its ascend, closing off the week at the 105.0 key resistance region. Price is mildly overextended, combined with resistance, price is likely to stall or retrace.

Gold Futures

Gold remains weak. but showing signs of overextension

Downside movement of Gold remain strong last week as it printed four days of losses. Momentum is mildly overextended and if this momentum persist, price is likely to reach the next level of support at 1789 can will likely be overextended by then, where high risk long opportunity can be entered. If Gold managed to push above the 1853 region, a short term shift towards the upside can be assumed.

Trade Recap

Cotton #2 Futures (Analysis 8-1)