Christmas rally on the XJOTrade Set Up – We would be looking to enter on a daily close above 5780 with stops confirmed once entered, and a target level of 5980-6000.
Why we like this trade – Whilst history is no guarantee of future price action it is important to note that a correlation in a Dec move over the past 10 years has yielded an average of +2.74%, all of which starts from the 16th of December.
A strong start to the month for equities with the XJO up 1.84% and price action recently testing and finding support at 5650, which has held true all year. We would be looking to enter with a daily close above 5780 and stops to be set once entry is confirmed around the 23.60% retracement of the most recent short-term down move. Our target level would be as high as 5980-6000 and a break above these levels could target the YTD high of 6380.
That said, a weekly close below 5680 and more so, a break below the uptrend and 23.60% long-term retracement may indicate a major bear moves and a potential end of a 9-year bullish cycle where it may be not so merry for investors in the top 200.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority (FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation
