Tuesday, February 7, 2017

Best Trades for Wednesday | SchoolOfTrade Newsletter 02/07/17

 “Happiness is not an accident. Nor is it something you wish for. Happiness is something you design… it is a state of mind.”

Crude Oil is bearish and trying to finish a move down to January’s low, but we just saw the API Report, which is giving us some important levels of support and resistance ahead of tomorrow’s session.

E-Mini S&P is bearish and trying to re-test yesterday’s low, but the chart pattern we see tonight tells us this may be easier said than done, and it may kick back in the face of the sellers.

Gold is bullish, but a measured-move and short-term channel are telling us to resist the temptation to chase this move because another pullback may be on the way.

Euro is bearish and trying to re-test the low, but there’s one obvious support levels standing in their way.

FDAX is bullish and trying to re-test the high, but a key resistance level overhead is staring us in the face, reminding us not to chase this move higher.

Crude Oil
Crude Oil is bearish and trying to finish a move down to last month’s low, but we’re trading below this bear spike & channel which tells the sellers to avoid chasing this move and look for selling-opportunities up off the lows using traps and failures tomorrow.  One thing to keep in mind is tomorrow inventory report, due at 10:30am EST, which means we are watching the API Levels, and often times we see a big correction ahead of major news, so buyers will be watching to see if they can get some strength coming off these lows to take short-term control ahead of tomorrow’s news.

API Levels for tomorrow are: 53.35, 52.80, 52.25, 51.70, 51.15, 50.60

E-Mini S&P
E-Mini S&P is bearish, but trading at the low of a triangle isn’t the most reliable area to start selling, which tells us to look for selling-opportunities up in the ‘battle zone’ around the high of the triangle, and beware selling into the multi-day lows unless we see a successful breakout-pullback.

Gold is bullish and trying to finish a re-test of today’s high, but the measured-move appears to be standing in the way.  As we covered in the last night’s newsletter, the bulls were waiting for a deep pullback, and now they’re trying to finish the move, while avoiding the temptation to buy the highs.  If you missed the most recent ‘trap low’, not to worry, the short-term bear channel is telling us that we may get one more chance to participate in this move they finish.

Euro is bearish and trying to re-test the low after a ‘grind break’ told the sellers to stay patient for a deep correction into the ‘battle zone’.  The sellers clearly responded by selling the ‘battle zone’, and now they need to get below the rising support trend-line to complete the move back down to re-test the low and possibly down to last week’s low.


FDAX is bullish and trying to re-test today’s high after the buyers finally got the deep pullback they had been waiting for.  The bulls took control on strength this morning but never really gave the buyers any opportunities to buy pullbacks, which explains why we see such a strong reaction in the ‘battle zone’ as the buyers look for this seller-failure to move back up to re-test the high, and possibly make a run to a measured-move. 

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