Yesterday, the KLOFFE was seen sideway most of the day (except the last 45 minutes). Volume was very high in the early session, due to the institutional roll-over from July contract. I did not take a position due to the sideway action. Those that have SHORT position should have exit when the price moved up in the afternoon.
Since it is 30th July now, we shall trade the August contract today. There’ll be some changes in the figure, but overall trend will be similar to the July contract. Whatever been discussed earlier will still apply, but with approximately 10points difference.
It is seen that the KLOFFE is forming a trading channel. This indicate short term bullish move. Today market would gap up due to the strong DJIA market yesterday (266.48 points). I would think that it will retest the 1142 level.
If it gapped up beyond this level (1142), I would go in “Long”. Observe at the first hour since this is the time which volatility is large. However, if it breaks the 1130 level (provided not sideway like yesterday), a SHORT trade would be triggered.
Daily Pivot Points
Support 1: 1130 Resistance 1: 1142
Support 2: 1120 Resistance 2: 1150
Support 3: 1111 Resistance 3: 1160
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David Kong
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