Thursday, January 21, 2016

4 Trend Channels for Friday | Crude Oil, Gold, E-mini & Euro Futures 01/21/16

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Notes for Tonight’s Newsletter:
Crude Oil is bullish but 3 pushes higher sent price to the highs of the channel so we expect to see a 2-legged-correction off the highs before the next round of buying.  We have a multi-day bullish channel and a spike & channel with 3 pushes up to the highs which tells us wise buyers will take profit at the highs and wait to buy at a cheaper price.  Look closely and you can see the double-top at the high missed by only 1-tick which tells us the sellers sold the highs which then caused a break of the swing-low and now the buyers are trying to finish the job back at the highs, and if they fail the sellers will push price back to the channel lows again tomorrow.

E-mini S&P is bullish with a long-term channel and triangle pattern setting up for tomorrow but it appears the sellers missed the test of the channel low so we will keep an eye out of a fake-break low before it shoots higher.  The multi-day bull-channel is easy to see that the recent move back to the lows missed by only a few ticks, and after a bullish rotation at the highs we should see them touch the lows (if not further) before the majority of the bulls get interested again.

Gold is bullish after a perfect correction off yesterday’s highs which should entice the buyers back into this market so we will look for the bulls to hold the next pullback to prove it for us.  Look closely and you can see they haven’t tested the spike & channel support back at 1090.2 so if the buyers can’t hold this pullback we can expect a 2-legged-correction to test that support and then we will look for it again.

Euro is bullish after recovering from today's reaction to the ECB Report but the overshoot of the channel-high and new bull-flag tell us to wait for a 2-legged-correction with 3-pushes to overshoot the channel lows before looking to get long tomorrow.  The news this morning sent prices tumbling but the bulls responded with vigor as they pushed price 2/3 of the way back to where the sellers have their stops above the news-candle's highs.  The overshoot and bull-flag are the big variables telling us to stay patient and we can see a great support level around 8600 to look for seller-failures and a push back to test the highs of today's session.

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