Wednesday, January 25, 2017

4 Trend Lines to Watch Tomorrow | SchoolOfTrade Newsletter 01/25/17



“Motivation is what gets you started. Habit is what keeps you going.”

Crude Oil is bearish and rotating back to the high of a channel this evening where we have multiple levels of resistance for the sellers to look for trading opportunities with a target back at the low. 

E-Mini S&P is bullish and trading with a wedge this evening on the way to completing a measured-move. 

Gold is bearish and trading at the 1200 round number this evening and appears to be developing into a range. 

Euro is trading sideways inside a triangle/range this evening which tells the bears to sell the highs, the bulls to buy the lows, and both sides to avoid the middle. 

FDAX is bullish after another strong run higher today, which leaves the bulls looking for opportunities to ‘buy low’ at support levels tomorrow. 


Crude Oil
Crude Oil is bearish and rotating back to the high of a channel this evening where we have multiple levels of resistance for the sellers to look for trading opportunities with a target back at the low.  The goal for the bears is to use the top of the channel, the measured-move, and the reversal-line resistance levels overhead, and make sure to avoid selling ‘low’ around the rising support trend-line.  Any time we have a rising support trend-line on the chart we always keep an eye on a possible reversal, which would require strength and a successful breakout-pullback above the ‘battle zone’ tomorrow for a move back to re-test today’s high.

E-Mini S&P
E-Mini S&P is bullish and trading with a wedge this evening on the way to completing a measured-move.  The bulls had another strong run higher today, and like all trends, we will be looking for buying opportunities down at support levels and look for targets up at the measured-move and completion of the wedge.  Anything that pulls back right now will likely be considered a buying opportunity, so sellers need to stay patient and avoid the temptation to call a ‘top’ on this market until they see sustained strength to the downside.

Gold
Gold is bearish and trading at the 1200 round number this evening and appears to be developing into a range.  The bears took control early in the session with a strong move lower that overshoot the bear channel by so much that we assume most of the sellers took their profit and are now waiting for another chance to sell high again tomorrow.  The buyers on the other hand, have been buying the dips, but they haven’t been able to get much going because of the falling resistance trend-line overhead, which may result in a triangle tomorrow.  The bears have the edge until the buyers can show us some strength, and the most reliable selling-opportunities will come up above the highs of the triangle, in the ‘battle zone’ tomorrow.

Euro
Euro is trading sideways inside a triangle/range this evening which tells the bears to sell the highs, the bulls to buy the lows, and both sides to avoid the middle.  Whenever we have a trading-range, we know to stay patient and focus on selling buyer-failures at the highs, and buying seller-failures at the lows until we see a successful breakout-pullback that can hold a trend outside the range.

FDAX

FDAX is bullish after another strong run higher today, which leaves the bulls looking for opportunities to ‘buy low’ at support levels tomorrow.  This market has been pushing higher like this for two consecutive sessions, and eventually the buyers will stop buying the highs and this price will begin to trade sideways and give the buyers some opportunities to find seller-failures and traps at levels of support.  Anything that pulls back will likely be seen as a buying opportunity, so the sellers need to beware trying to sell reversals until they see a successful breakout-pullback below the moving-average and some continued strength to the downside.

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