Monday, June 19, 2017

Trading the Parabolic Move | Crude Oil, Emini, Gold, Euro, FDAX



“Do not judge each day by the harvest you reap, but by the seeds you have sewn.” – Robert Louis Stevenson


Crude Oil is bearish and “2 Legs Down” this evening, which tells us to avoid chasing this move lower, and wait for a bullish correction to sell more tomorrow.

S&P is bullish with a Spike & Channel, and we’re watching the Prior Week High as a major psychological level for the buyers looking for pullbacks tomorrow.

Gold is bearish with a parabolic move lower today, telling us this is a great time to bank some profit and wait for a ‘2-legged correction’ back to the channel high tomorrow.

Euro is bearish with a Spike & Channel this evening, but we’re getting a little too close to last week’s low, so the plan is to look for selling-opportunities up in the ‘battle zone’ tomorrow.

FDAX is bullish with a Spike & Wedge, so the plan is to look for buying opportunities below support levels with a measured-move target waiting overhead.


Crude Oil Trading Strategy
Crude Oil is bearish after collapsing off today’s high, and sitting on the prior month low.  The chart shows us that sellers broke free of the channel and are ‘2 legs down’, which tells me that this will likely be seen as a great place to take profit, and sellers will wait for a better price to sell more tomorrow.  The plan is to look for selling-opportunities up in the ‘battle zone’ using buyer-failures above the moving-average or a ‘2-legged correction’ for a target going back to re-test the low.

E-Mini S&P Trading Strategy
E-Mini S&P is bullish with a Spike & Channel, which tells me the most reliable buying opportunities will come after a ‘2-legged pullback’ to support levels down in the ‘battle zone’ tomorrow.  One thing that stands out on this chart is the prior month high, which was never really used today, so I assume that buyers will use that as a psychological level to justify buying more if they get the pullback tomorrow.

Gold Trading Strategy
Gold is bearish with a channel after a strong, “parabolic” move lower today.  This much strength for the bears is a great place to bank some profit, which may lead to a short-covering-rally and a rather sharp correction higher.  I don’t want to sell the low of this channel, so the plan is to look for a ‘2-legged correction’ off these lows, back up near the high of the channel for the next round of selling-opportunities back to re-test the low.

Euro Trading Strategy
Euro is bearish with a Spike & Channel this evening, and with last week’s low approaching quickly, I really don’t want to look for selling-opportunities this close to the objective, so the plan is to look for more reliable opportunities up at resistance levels overhead.  One thing to keep in mind for tomorrow is the distance up to the ‘battle zone’, which could easily give the buyers an opportunity to take control and make a run higher tomorrow in the short-term before this market turns over and finishes the move to last week’s low.

FDAX Trading Strategy

FDAX is bullish with a Spike & Wedge this evening, and with the range inside the wedge getting narrower, I would expect the most reliable buying opportunities to be after a ‘2-legged pullback’ to support levels with a target going back to the high.  One thing to keep in mind is the combination of the wedge and measured-move resistance levels overhead.  If this market keeps pushing higher, focus on ‘traps’ to keep buying low and avoid the temptation to chase.

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