Wednesday, May 31, 2017

Trade the Spike & Range | Crude Oil, Emini, Gold, Euro, FDAX




“There is no such thing as failure. There are only results, and how we respond to those results will determine our level of success.”


Crude Oil is bullish ahead of tomorrow’s Inventory Report… and we have a bull flag on the chart which tells us to look for a ‘2-legged pullback’ for next round of buying opportunities on Thursday.

S&P is bullish and trying to re-test today’s high… and the channel on the chart tells us to wait for rotation back to the lows tomorrow.

Gold is bullish and trying to re-test the high… and a previous trading-range, combined with a key resistance level are giving us plenty of clues for tomorrow’s session.

Euro is bullish with a Spike & Range this evening… telling us to look for traps and failures at the ‘battle zone’ below us tomorrow.

FDAX is range-bound with a triangle this evening… so the plan is to use the '2-Try Rule' to buy the lows and sell the highs using failures tomorrow.


Crude Oil Trading Strategy
Crude Oil is bullish and trying to make up for lost ground ahead of tomorrow’s Inventory Report.  The recent bull flag is a big clue… telling us to look for the measured-move target, and then wait for a ‘2-legged pullback’ off the high for the next round of buying opportunities tomorrow.  The only variable for tomorrow is the Inventory Report @ 11:00am EST… which reminds us that price often does a sharp trend reversal around that report… so we will keep our eyes open as the bulls try to make a run back to the $50 round number tomorrow.

Crude Oil Inventory Levels for Thursday:
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49.58, 49.14, 48.70, 48.26, 47.82, 47.38


E-Mini S&P Trading Strategy
E-Mini S&P is bullish with a channel this evening… telling us to look for buying opportunities down at support levels tomorrow.  The first thing that stands out on this chart is that the buyers are hunting for a re-test of today’s high, but we don’t want to buy into the high of the channel, so we’re looking for a ‘2-legged pullback’ off the high… perhaps back in the ‘battle zone’… for the most reliable buying opportunities tomorrow.

Gold Trading Strategy
Gold is bullish with a channel… which tells us to use support levels to ‘buy low’ with a target going back up to re-test the high tomorrow.  This Trading-Range is a big clue… especially with this ‘2-legged pullback’ coming off the highs, so the plan is to look for seller-failures for a target going back to re-test the high…making sure to avoid buying into the measured-move resistance level which is just a few dollars overhead.

Euro Trading Strategy
Euro is bullish with a Spike & Channel… which ended the session as a Spike & Range, which tells us to look for buying opportunities below prior support levels for a target going up to the prior week high.  The goal is to use failures and traps down in the ‘battle zone’ if possible, and avoid chasing the move higher if the bulls attempt a breakout.

FDAX Trading Strategy

FDAX is range-bound and trading at the low of a triangle this evening, so the plan is to use the '2-Try Rule' to buy the low of this range using seller-failures with a target going back to the opposite side of the range.  More specifically… we’re watching the support levels below us because the sellers have already tried once… and the next time they try and fail will be the most reliable buying opportunity off the low.  One thing to keep in mind for tomorrow is the possible ‘bow tie’ or inverted triangle… using the triangle on the opposite side to buy the low and sell the highs tomorrow.

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