ATM Trading Club Newsletter

Thursday, June 13, 2024

### THE HANGMAN: Bull Trap or Not?

Excitement filled the air today as we opened at a soaring 5441.93! However, the market had other plans, as a sudden sell-off tested the crucial 5400 zone. Just when it seemed the bears were taking control, the dip buyers stepped in, fueling a remarkable recovery.

But the big question remains: How can we identify these dip buyers?

But the big question remains: How can we identify these dip buyers?

We have a perfect hangman on the top of the channel and all-time high with a textbook scenario coming into Friday trades and a possible profit-taking session.

### Trades for Friday:

Gap Up: If the MACD shows divergence and the price struggles to rise further, consider a Call Vertical spread with strikes 10 points above the morning high.

Gap Down: To capitalize on a potential bounce, look for support around 5420. If buyers step in at this level, a Put Vertical spread under 5415 would be a prudent choice for capturing a good credit.

Support and Resistance Charts