Tuesday, July 11, 2017

“Strength” Trading Strategy | Crude Oil, Emini, Gold, Euro, FDAX

“Whether you think you can or think you can’t…you’re right.” 

Crude Oil is bullish after a strong spike higher to finish today’s session, telling us to look for one of four possible scenarios ahead of tomorrow’s inventory report.

S&P is bullish with a Spike & Channel this evening, telling us to focus on traps and failures below prior swings with a target back up to the measured-move.

Euro is bullish with a Spike & Range, which tells us to look for buying opportunities using seller-failures below the range, or a breakout-pullback to new highs tomorrow.

FDAX is range-bound and trying to finish the ‘pendulum swing’, which tells us to use the '2-Try Rule' to focus on failures at the range highs and lows tomorrow.

Crude Oil Trading Strategy
Crude Oil is bullish, and most likely considered “over-bought” ahead of tomorrow’s Inventory Report, which tells us to use this strong ‘spike’ as a leading indicator of four possible scenarios tomorrow.

The plan is to look for confirmation of a Spike & Channel, Spike & Range, Spike & Wedge, or Flag pattern going into tomorrow’s session.

The bulls have clear control, but we don’t want to chase this move higher, with a goal of waiting for traps or a ‘2-legged pullback’ to ‘buy low’ with a target going back to the high.

Crude Oil Inventory S/R Levels for Wednesday:
46.77, 46.21, 45.65, 45.09, 44.53, 43.97

E-Mini S&P Trading Strategy
E-Mini S&P is bullish with a Spike & Channel, telling us to look for buying opportunities down below prior swings with a target going up to the prior day, and possibly prior week highs tomorrow.

The measured-move is a concern at this point, we’ve tested it once, and we should test it again, and we would like to buy as low as possible, perhaps down in the ‘battle zone’ tomorrow.

Gold Trading Strategy
Gold is bullish with a Spike & Wedge, telling us to look for buying opportunities down in the ‘battle zone’ with at the vertex of the wedge tomorrow.

The range inside the wedge gets smaller as the pattern develops, which tells us to focus on buying below the wedge to avoid buying into resistance.

One thing to keep in mind tomorrow is the measured-move, which may come into play if we can push through the wedge target, but price will be considered very “expensive” at that point, so our focus will be on traps to avoid ‘buying high.’

Euro Trading Strategy
Euro is bullish with a Spike & Range this evening, telling us to look for buying opportunities both above and below the range tomorrow.

The buyers will use the '2-Try Rule' to buy seller-failures below the range, and the fake-out breakout pullback to buy a strong breakout to new highs.

FDAX Trading Strategy
FDAX is range-bound with a slight bull-bias this evening as buyers are still hunting for the ‘pendulum swing’ that started middle of last week.

The buyers will be looking for opportunities below the low of the range using the '2-Try Rule' or above the range using the fake-out breakout pullback, while avoiding the middle of the range.

Sellers will need to look for the buyers to try and fail twice above the range high for selling-opportunities back down into the range tomorrow.

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