WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

CFD: Ideas You Can Trade - WallStreet Pushes To New High

Posted by Steven Hatzakis on May 18, 2015 3:30:00 PM

WallStreet: Intraday Record High Ahead of Close as Week Starts Bullish for Dow Jones Industrial Average (DJIA)

The daily candle chart below shows the short term price history of WallStreet - a contract for difference (CFD) which aims to track the underlying Dow Jones Industrial Average (DJIA) index. Today WallStreet is trading near 18301 around time of publication - and just off an all-time record high (intra-day) for the underlying index -and is less than 10 minutes before the session close this Monday in New York. 

In early May - last time WallStreet was reviewed in Ideas You Can Trade - the bullish support line of the up-channel (see yellow channel on chart below) was tested again, and since then the index recovered towards current levels. 

Today WallStreet pushed to a new intra-day high and is about to close around that level - setting an new all time high - and starting the week on a very bullish note.

If support above 18000 is maintained (and up the current bullish line - see blue trend line on chart below), we should see fresh highs continue, whereas if support is lost around current levels - a sharp drop should follow. For now, the trend seems very bullish.

Below are examples of how to trade a bullish continuation or a bearish reversal:

1.  BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 18326 with a Limit to take profit @ 18427  and a stop-loss @ 18244  Risk/Reward Summary: Limit risk =  +101 points profit / (-82) Stop-loss risk = Gain to Loss ratio = 1.23

2.  BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 17999 with a Limit to take profit @ 17849 and a stop-loss @ 18150  Risk/Reward Summary: Limit risk = +150 points profit / (-150) Stop-loss risk = Gain to Loss Ratio = 1.00

Short term chart (daily candles):

WallStreetDaily May182015 note

Topics: DJIA, US Stock Market, Dow Jones Industrial Average, contract for difference, technical analysis, cfd, Forex, Ideas You Can Trade, Wall Street, WallStreet, Dow Jones


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!