Tuesday, July 18, 2017

Trading the Rule of 3’s | Crude Oil, Emini, Gold, Euro, FDAX



“You want to know my secret for success?  Success is achieved when you seek out your weaknesses and turn them into strengths.” 


Crude Oil is bearish and trying to re-test today’s low, but rising support is telling us to trade this like a triangle ahead of the weekly inventory report tomorrow morning.

S&P is bullish, and we recently reached a measured-move, telling us to look for a ‘2-legged pullback’ off the highs so buyers can buy the dip for a target going back to re-test the high.

Gold is bullish with a Spike & Channel and the “Rule of 3”, which tells us to look for a ‘2-legged pullback’ down into the ‘battle zone’ for a re-test of the high.

Euro is bullish with a Spike & Wedge, telling us to look for a deep pullback off the highs and a target going up to the Double-Up and wedge target overhead.

DAX is bearish and trying to move back to a monthly support zone, and we’re using a flag pattern, combined with the ‘battle zone’ for the most reliable selling-opportunities tomorrow.


Crude Oil Trading Strategy
Crude Oil is bearish inside a triangle ahead of tomorrow’s weekly inventory report, which tells us that although anything can happen ahead of this news, we expect to see the best trading opportunities at the highs and lows of this triangle.

The bears have control, and they are trying to re-test today’s low, so the goal is to look for selling-opportunities up at resistance levels overhead, but we have mid-morning news which may send this market higher, giving us buying opportunities along with it.

Crude Oil S/R Levels for Wednesday:
47.88, 47.35, 46.82, 46.29, 45.76, 45.23

E-Mini S&P Trading Strategy
E-Mini S&P is bullish and recently completed a rotation back to the high, as well as a measured-move target.

The measured-move is a big clue, telling us to look for a ‘2-legged pullback’ off the highs and look for traps and failure down at support levels for a re-test of the measured-move in tomorrow’s session.

Gold Trading Strategy
Gold is bullish with a Spike & Channel with the Rule of 3 into a range this evening, telling us to look for a ‘2-legged pullback’ into the ‘battle zone’ for the most reliable buying opportunities tomorrow. 

One thing to keep in mind for tomorrow is that this Trading-Range tells us to look for the sellers to try twice below the range low, so don’t get too aggressive trying to buy the dip because we expect to see a 2nd leg lower, perhaps down to the reversal-line at 38.1.


Euro Trading Strategy
Euro is bullish with a Spike & Wedge, which tells us to look for a deep correction off the highs and a move up to complete the wedge target, which just happens to also line up with the Double-Up target for the bulls tomorrow.

The big areas to watch tomorrow will be the GAP still open at the ‘battle zone’, along with the falling resistance trend-line coming down overhead. 

Our goal will be to buy as low as possible to avoid buying into this resistance, or wait and use that trend-line as support.

FDAX Trading Strategy
FDAX is bearish and trying to finish a move back down to a monthly support zone, and this recent overshoot of the channel low, combined with a bear flag pattern are telling us to stay patient selling-opportunities up at resistance levels overhead.


The ideal scenario for sellers will be a correction above this flag pattern, up around the ‘battle zone’, which will give them plenty of wide open space to take a nice big target going back down to the low.

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