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Notes for Tonight’s Newsletter:
We have some great trading opportunities setting-up for Friday's session; Crude Oil is bullish with a spike & channel, S&P is range-bound while Gold and Euro are both bearish going into the opening bell in Asia.
Crude Oil is bullish with a spike & channel this evening, which tells the buyers to be looking for 'traps' below previous support levels with a target going back the highs and possibly up to complete the measured-move up at 48.15. Buyers have control, and with such a strong bull move we can assume that anything above the 'battle zone' will be seen as a buying opportunity. Buyers would love to get a pullback in the 'correction zone' and then look for the move back to the highs and the sellers will be looking to make a move back to the lows if they can break down below the battle zone tomorrow.
E-mini S&P is bearish and trading inside a range, which tells the sellers to look for buyer-failures at the highs or a successful breakout-pullback at the lows. The range has a bearish bias which means selling the highs of the range will be the most reliable way to trade, but we can assume that buyers will be waiting at the lows to look for seller-failures to go back to the range highs. Trading ranges tell us that this market is 'balanced' so we will be looking to buy low, sell high, and focus on failures tomorrow until we see a strong breakout and continuation in one direction or the other.
Gold is bearish and trading at major support levels, which tells the sellers to be patient and gives the buyers a window of opportunity if they can hold a pullback. The session started inside a range and then broke lower with a strong bear move to complete the 'double-down' as well as test the low of a bear channel. The sellers clearly have control, but the rising support trend-line, combined with the other areas of support in this area make it hard for the sellers to get anything reliable down here which means the buyers will be looking for a chance to buy on the way back to the low of the range at 45.8 where they will then need to assume that sellers will be waiting.
Euro is bearish and trying to finish the move back to the low of day but the 'double-down' and channel-low is acting as support so the sellers will be looking for opportunities back up at resistance levels near the high of the channel for a move back down to re-test the lows. Buyers may have a small window of opportunity as price pushes higher but they need to beware buying into the high of the channel because we assume sellers will be waiting around the 'battle zone' tomorrow.
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