Game Plan 31/10/12

Market:  Eurex EURO STOXX 50 Index Futures, $FESX_F

Buy/Sell?:  Sell @ 2531,  At this level we will try to fade the market although the Line Of Least Resistance is still upward sloping.

Range:  2530/2540

Reason for trade:  Although the Stoxx50 is screaming to go higher, as shown by the Upward Sloping Line of Least Resistance, still there is a lack of fundamentals. The question we need to answer is what can sparkle the move? Depending  on the reaction the future will have on the 30 mark we will be able to understand if we will go for higher highs (a breakout will lead to the 2570 test) or if next step will be a breakout of the 2430 level.

At the moment we acknowledged our bias, but before pulling the trigger we will keep an eye on the Eur/$ for a confirmation.

Originally posted at www.77sigmatrading.com