Wednesday, April 12, 2017

Trading with Range Breakouts | SchoolOfTrade Newsletter 04/12/17



“Setting goals is the first step in turning the invisible into the visible.”


Crude Oil is bearish and sitting at a quadruple measured-move this evening, which is BIG CLUE that sellers will likely be taking profit, and waiting for a better place to sell more tomorrow. 

E-Mini S&P is bearish and trading at the low of a range, just a few points of many different levels of major support, so we’re waiting patiently for a correction to avoid chasing this move at the lows.

Gold is bullish after comments about the strength of the US Dollar hit the news wires late this afternoon, and this strong ‘spike’ higher tells us to look for a spike & channel or a bull wedge. 

Euro is bullish with either a spike & channel or wedge this evening, which tells us to look for 2-legged pullbacks for the most reliable buying opportunities tomorrow. 

FDAX is bearish and trading in what may be either a spike & range or a spike & channel this evening, both of which giving us important clues as to where the most reliable trading opportunities will occur tomorrow. 

Are you excited yet?  These big moves have been incredible this week as these markets continue to give us amazing trading opportunities, and tomorrow is looking like another great day setting up as well.


Crude Oil
Crude Oil is bearish and sitting at a quadruple measured-move this evening, which is BIG CLUE that sellers will likely be taking profit, and waiting for a better place to sell more tomorrow.  It’s easy to see this market is bearish, almost TOO bearish if you ask me, but all I can do is prepare for two scenarios to avoid selling low tomorrow.  If price moves higher, we’re watching overhead resistance levels for an opportunity to use a ‘2-legged correction’ to sell back down to the lows.  If price goes lower, we expect yesterday’s low to act as support, so the plan is to use a bull-trap to sell high for the next leg lower.

E-Mini S&P
E-Mini S&P is bearish and trading at the low of a range, just a few points of many different levels of major support.  The bears have control after this incredible sloppy session, but they don’t want to ‘sell low’, so the best option is to wait for a correction to ‘sell high tomorrow’.  If price goes higher, we’re looking for buyer-failures up at the resistance levels waiting overhead.  The real challenge, however, comes if price pushes lower; we don’t want to sell into this array of support levels, so we will need to look for a 2-legged correction and a bull trap to do our best to sell as high as possible tomorrow.

Gold
Gold is bullish after comments about the strength of the US Dollar hit the news wires late this afternoon, and this strong ‘spike’ higher tells us to look for a spike & channel or a bull wedge.  Either way, the bulls have control of this market, but this sudden spike higher most likely has a lot of bulls still waiting for a pullback, so we want to stay patient tomorrow.  The most reliable buying opportunities will likely be a 2-legged pullback to support, or a bear-trap if price keep pushing higher.  Targets for the buyers will be the Double-Up, which is drawn using the initial ‘spike’ from earlier today.

Euro
Euro is bullish with either a spike & channel or wedge this evening, which tells us to look for 2-legged pullbacks for the most reliable buying opportunities tomorrow.  After responding bullishly to comments about the strength of the dollar this afternoon, we assume there were many buyers who weren’t able to get into this move before it happened, so they are waiting for a place to ‘buy low’.  Our plan will be look for buying opportunities back at support levels using 2-legged pullbacks with the goal of reaching last week’s high, and possible the Double-Up overhead.

FDAX

FDAX is bearish and trading in what may be either a spike & range or a spike & channel this evening, both of which giving us important clues as to where the most reliable trading opportunities will occur tomorrow.  The spike down tells us we want to be selling, but we don’t want to sell low, so the goal is to sell up above the high of the range, or sell a successful breakout-pullback to new low tomorrow.  The sellers are surely hunting for the next measured-move down, but we can assume they have their sights on yesterday’s low.

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