[Signals done on alsi future]
Recommendation: SELL SHORT RALLIES
Current Trend: Short- and med-term down. Long-term sideways.
Strategy: Sell short a rally to the 52 200 level. (Aggressive traders can chance going long first).
Chart Setup: The All Share index continued sharply down with no buy signal triggering. It has reached an important support zone shown here in recent weeks at line/s 5 and is bouncing from there today so far. The trend is down though, and while a relief rally is likely, expect it to be followed by more downside.
Strategy Details: The basic strategy is to be shorting rallies. A rally to the 52 200 level is shortable on a reversal day/candle down from there. Very aggressive traders could chance going long if the price maintains its strength into today’s close, but it is very counter trend and there risky. However, given that the price is moving up off the support level at line 5, one can arguably justify such a trade).
Target: A rally to 52 200 level, and potentially if we really have a good rally, to 52 700. Thereafter, look for further downside to break below line/s 5 (50 700) and reach its Dec low of 48 936, in a support zone formed by line/s 6.
Stop-loss: For shorting from higher up, stop is a close above 53 000 initially. We’ll lower it once the next move down takes hold. (For aggressive traders chancing a long trade, use a break below Friday's low of 50 749 as the stop. Then a breaking of its prior one-day low form 50 970.
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