The KLOFFE SPOT MONTH has seen a very large up move on Friday towards the second session of the trading day. It broke the 1132 & 1140 resistance points with one GO.

It formed a good saucer shape which indicates bullish market.

On the 8^th Jul, the down bar on high volume indicates that there’s a panic selling from the traders where by market makers were readily absorbing the volume. This could be seen on the next couple days as the market was holding at the 1100 – 1125 level (closing on the high). The up bars after the high volume down bar indicated there’re more buying than selling.

At this point, the price should be either upwards or sideways. The market makers are accumulating, preparing for a move. Occasionally test (sharp down move) could be used to shake out any traders. Low volume test will show sign of strength.

Since DJIA was down about 1.14%, it is expected the KLOFFE to gap down on Monday to approximate 1129. Some sharp moves are expected to catch Stop Loss.

Recommend to Long on Monday (after gap down) and put your Stop Loss @ 1120. This is a long term trade which would last for a few days to 2 weeks.

Daily Pivot Points

Support 1: 1139 Resistance 1: 1145

Support 2: 1130 Resistance 2: 1154

Support 3: 1120 Resistance 3: 1164

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