Tuesday, August 8, 2017

3 Ways to Profit from Trend Reversals | Crude Oil, Emini, Nasdaq, Gold & Euro



“Strength does not come from winning. Your struggles develop your strengths. When you go through hardships and decide not to surrender, that is strength.”


Crude Oil is range-bound ahead of the weekly Inventory Report, telling us to stick to the edges, buying the lows, selling the highs, and avoiding the middle tomorrow.

S&P is bearish with a strong spike lower as it tries to re-test the prior week low, and we’re watching for one of four specific patterns setting-up for Wednesday.

Nasdaq is bearish with a strong spike lower, and we have a key resistance trend-line overhead for the most reliable selling-opportunities tomorrow.

Gold is bullish and trying to re-test today’s high, but we have a major resistance level standing in our way, so we’re watching a key support trend-line for buying opportunities tomorrow.

Euro is bearish, but two big clues on the chart tell us to avoid selling this move, and look for a “hidden channel” and possible reversal tomorrow.


Crude Oil Trading Strategy
Crude Oil is range-bound with a triangle, measured-move, and inventory levels of support and resistance to work with tomorrow.

The triangle tells us to treat this like a range; buy the low, sell the high, avoid the middle, and focus on failures using the '2-Try Rule' tomorrow.

The measured-move and the inventory support and resistance levels will be used for buying opportunities below the range low, and selling-opportunities above the range high.

One thing to remember for tomorrow is that we often see trend-reversals ahead of the news, and ANYTHING can happen on “Inventory Day” so we will be keeping our eyes open!

Crude Oil Inventory S/R Levels for Wednesday:
50.06, 49.73, 49.40, 49.07, 48.74, 48.41

E-Mini S&P Trading Strategy
E-Mini S&P is bearish with a strong spike lower, a resistance trend-line, and the prior week low for us to use tomorrow.

The strong spike lower tells us these sellers should have no trouble re-testing the low, and once completed, we then need to look for a lower-low before we can tell which pattern we get tomorrow.

The overhead resistance trend-line can be used for selling-opportunities tomorrow and the prior week low and quadruple-down levels can be used as profit targets.

E-Mini Nasdaq Trading Strategy
E-Mini Nasdaq is bearish with a strong spike lower, resistance trend-line, and a Double-Down to work with on Wednesday.

This strong spike lower tells us to look for a Spike & Channel, Spike & Range, Spike & Wedge, or possible Flag pattern tomorrow.  All of which, are telling us to focus on selling at resistance levels for targets waiting below.

The quadruple-down target will make for an easy runner target tomorrow, but we need to see proof that sellers can hold a pullback before we commit to anything.

Gold Trading Strategy
Gold is bullish with measured-move, support trend-line, and ‘battle zone’ on the chart for tomorrow.

The measured-move is acting as resistance, reminding us to avoid buying too high, and the support trend-line, combined with the ‘battle zone’ will make for an excellent place for buying opportunities on the way back to the highs tomorrow.

Euro Trading Strategy
Euro is bearish with a Spike & Channel, “hidden channel”, and prior day low to work with tomorrow.

The Spike & Channel tells us that sellers will be trying to “sell high” with a target back down to re-test the low, but we can clearly see that sellers took profit at the prior day low, which tells us to beware trying to sell into that support area until we get higher prices.


The hidden channel is really the big variable for tomorrow.  It prevents us from getting too aggressive with a buyer-failure, and gives the bulls an opportunity to buy with a “trap low” and try to reverse the trend back into the original Trading-Range tomorrow.

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