Thursday, August 10, 2017

How to Avoid “Traps” Friday | Crude Oil, Emini, Nasdaq, Gold & Euro



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Crude Oil is bearish, but sitting on two (2) major support levels is telling us to look for “Traps” above prior swings for selling-opportunities tomorrow.

S&P is bearish and trying to complete a measured-move, but we’re seeing this market “2 Legs Down” so we’re waiting for a ‘2-legged correction’ to sell more tomorrow.

Nasdaq is bearish, but trading at two (2) major support levels, we’re looking for more reliable selling-opportunities up in the ‘battle zone’ on Friday.

Gold is bullish and trying to re-test today’s high, and we’re watching closely to see one of three (3) scenarios developing for tomorrow.

Euro is bullish, and a recent "overshoot" of the channel tells us to look for a deep pullback off the highs before re-testing the round number tomorrow.


Crude Oil Trading Strategy
Crude Oil is bearish with a channel, triple-down, prior week low, and ‘battle zone’ on the chart for tomorrow.

The bear channel tells us to look for selling-opportunities using “traps” and “buyer-failures” up above the moving-average and around prior swings.

The triple-down and prior week low are both major support levels, telling us to avoid selling here and wait for a higher price to sell tomorrow, while the ‘battle zone’ makes for an easy location for sellers to look for the most reliable trading opportunities on Friday.

E-Mini S&P Trading Strategy
E-Mini S&P is bearish with a Spike & Channel, resistance trend-line, measured-move, and ‘battle zone’ to work with tomorrow.

The bears broke free of their Spike & Channel just after 10:00am EST this morning, and if you look closely, they are already “2 legs down” which is usually where we start seeing profit-taking from sellers.

The measured-move acts as a target, but most importantly, it also gives us an opportunity for a ‘2-legged correction’ (hopefully up to the resistance trend-line overhead) and another selling-opportunities back down again.

E-Mini Nasdaq Trading Strategy
E-Mini Nasdaq is bearish with a channel, measured-move, ‘battle zone’, and prior week low setting-up for tomorrow.

The bear channel may also be considered a Spike & Channel, but the real value is the “hidden” resistance trend-line waiting overhead.

The measured-move is a major target for the bears, and tells us watch for either “rejection” or “acceptance” tomorrow, which will tell us if we will continue selling the market lower, of it we look for a ‘2-legged correction’ off the lows.

Lastly, the prior week low is always a price-magnet on Fridays, and it lines-up perfectly with the ‘battle zone’ overhead, which makes for an excellent place for selling-opportunities tomorrow.
  
Gold Trading Strategy
Gold is bullish with a strong bull channel, Double-Up, ‘battle zone’, and potential Trading-Range or Spike & Channel tomorrow.

The strong bull channel tells us the odds are good that this market will re-test the highs, but this Double-Up resistance level appears to be getting in the way, so we’re looking for more reliable buying opportunities down in the ‘battle zone’ tomorrow.

One thing we’re keeping a close eye on tomorrow is what happens next.  If we re-test the high in the short-term we are looking for a Spike & Range or a Spike & Channel, but if this recent attempt to make new highs FAILS, then we’re looking for a flag pattern tomorrow.

Euro Trading Strategy
Euro is bullish with a bull channel, overshoot, round number, and ‘battle zone’ to work with tomorrow.

The bulls channel tells us to use “rotation” to buy the low, but the recent “overshoot” of the channel tells us to anticipate an "overshoot" of the opposite side.


The ‘battle zone’ reminds us to look for buying opportunities after a nice deep pullback, and the round number at 18,000 will make for excellent target going back up to re-test the highs.

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