WallStreet: New All-Time High for DJIA as Bullish Momentum Marches Onward
The short term daily candle chart below shows the price of the WallStreet contract for difference (CFD) trading near 16,973 (around time of publication) after pushing to a new all-time high over 17,000 yesterday.
This CFD aims to track the Dow Jones Industrial Average (DJIA), and yesterday was trading within a range of 130 points between the sessions low and high, and the upward momentum continued and 17,000 was finally tested for the first time after barely failing on June 23 2014.
Last time the WallStreet CFD was covered in the Ideas You Can Trade series, resistance near 16750 had been overcome, and paved the way for the bullish continuation. The psychological level of 17,000 that has now been reached may be interpreted by traders as either a very bullish signal or a sign that a reversal could happen from this price.
Therefore, traders may be watching accordingly for either a continuation above 17,000, if a break above that price can happen today, or if it fails to be regained a reversal lower could follow.
Below are examples of how to trade a bullish continuation or a bearish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 17009 with a Limit to take profit @ 17077 and a stop-loss @ 16941 Risk/Reward Summary: Limit risk = +68 points profit / (-68) Stop-loss risk = Gain to Loss ratio = 1.00
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 16939 with a Limit to take profit @16848 nd a stop-loss @ 17027 Risk/Reward Summary: Limit risk = +91 points profit / (-88) Stop-loss risk = Gain to Loss Ratio = 1.03
Short term daily candle chart:
A note on CFD’s: A Contract for Difference, or CFD,is a financial contract allowing traders to potentially profit whether markets move up or down and include risk of loss. CFDs are cash-settled based on the difference in the value of an underlying asset from the time a trade is opened to the time the position is closed. A list of available CFDs that can be traded with WorldWideMarkets.com (WWM) can be found on the WWM website.
In addition to CFDs, WWM - through a third-party - offers direct access to non-US residents to trade exchange trade equities on the US Stock Markets, with more information also available via the WWM homepage.