Tuesday, February 14, 2017

4 Channels for Wednesday | SchoolOfTrade Newsletter 02/14/17

“Think Big and Don’t Listen to People Who Tell You It Can’t Be Done. Life’s Too Short To Think Small.”

Crude Oil is bearish and trying to finish off the target from last night’s newsletter, but there one trend-line that is most likely going to make or break this move lower.

E-Mini S&P is bullish, and the last two hours of trading gave us all the information we need to know where the most reliable buying opportunities will be tomorrow.

Gold is bearish, even after this strong move higher because there’s one big clue on the chart that I’ll bet most traders missed today.

Euro is bearish, but two big clues tell us that the selling is likely over and the bulls have a big opportunity if they can show us some proof tomorrow.

FDAX is bullish, but the bulls are just inches away from the target we defined in last night’s newsletter, so our next option is to wait for a fake-out breakout.

Crude Oil
Crude Oil is bearish ahead of tomorrow’s key inventory report, and the support trend-line on the chart is most likely going to be the line in the sand for who keeps control of this market tomorrow.  

The bear channel had an overshoot into an overshoot and then back to re-test the low, so we know the sellers got what they came for today.  

Now the big question is, can we hold the next pullback to the trend-line overhead?  If so, we’ll likely see the continuation down to the measured-move.  If not, we will be looking for the buyers to take control ahead of the news @ 10:30am EST tomorrow.

API Numbers for tomorrow are:  52.46, 52.70, 52.94, 53.18, 53.42, 53.66

E-Mini S&P
E-Mini S&P is bullish after the buyers got the pullback they had been waiting for, and we finished the session with a spike & channel which tells us to be looking for traps and failures on the next pullback to support levels waiting below.

Gold is bearish and trying to re-test the low, but they better get to it quickly, because this rising support trend-line is getting closer by the minute.  The bears had such a strong move lower, it appears most sellers were waiting for this last correction to fill the gap and head back down to the lows.  

The best trade was the trap above the gap, and the next selling-opportunity will come with the buyers failing at the moving-average. 

Euro is bearish, but the sellers not only got their measured-move, they also got the double-bottom, which tells us that sellers are most likely going to wait for a much higher price before they start selling again tomorrow.  

Combine that, with the rising support trend-line and you have the opportunity for the bulls to take control if they can show us some strength in the short-term.


FDAX is bullish and gave the buyers an excellent opportunity to ‘buy the dip’ using the flag from last night’s newsletter, but now we’re way too high to keep buying.  

The plan is to avoid buying high, which means a fake-out breakout on the next pullback to the range high, a trap or failure at the range low, or a successful breakout-pullback to new highs tomorrow. 

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