One of my very important pre market rituals is to check over my key support and resistance levels and mark them on my chart: I’m talking about the VWAP level here.
10449 was one of my biggest levels from Monday and Tuesday and I had this marked as a thick line.
So one of my plays for today was going to buy a buy around that level if everything fell into line. But yesterdays low was just below it. Which is stronger?
Well in my eyes yesterdays low in this case was due to the key level of 10449, ok it overshot slightly but in essence it found good support at the key level.
As the market pushed lower first thing, we had a cluster of support, the overnight low and the big 10449. So that was my zone of interest should the market get there.
It did and actually was one of those nice flushes with a low tick reading which gives you that tape edge entry.
The market popped fairly quickly back towards the middle of its range and the VWAP. The first VWAP tag was my queue to close.
It actually probed lower again, but this time I was more cautious, it was only after the 10449 level had held several probes and a small higher low was made that I decided to have one more nibble long (half size). I was looking for a potential move back up towards the high. The VWAP broke but it couldn’t hold so I closed when it pushed back under the VWAP again.