May Soybeans - 4000 Tick chart with Support, Resistance and Pivot for week of March 10, 2009
A valuable trading tool too often ignored by many traders of Futures and FOREX is the weekly points of support, resistance and pivot. These points are calculated based on the previous week's high, low and close. They are important levels that we use to set stops and profit targets for longer term position trades. In the chart above (May Soybeans) note how the lines have held the market "in line" for the week. It has moved higher once testing the cyan support line and then when the pivot is crossed price moved quickly to test resistance. Many traders took profits here and the market moved back down to the weekly pivot. Here it found support again and has moved smartly back to weekly resistance. It could now move significantly higher if the earlier highs of the week are broken. Where might it go from here today? The secondary resistance for the week is 902. So today we will be using our nested trading strategy to put on long positions with an objective of 902. We determine the weekly support,resistance and pivots each week-end for all the markets we trade (25 futures markets and 8 FOREX pairs). The numbers are published (PDF Format)in our Weekly Trade Plan for Futures and our Weekly Trade Plan for FOREX. This is a free service to traders of both Futures and FOREX.
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