Tuesday, August 15, 2017

Trend Reversal Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

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Crude Oil is bearish ahead of the weekly inventory report, and we’re looking for selling-opportunities in the ‘battle zone’, while keeping our eyes open for the typical reversal we see ahead of the news tomorrow morning.

S&P is bullish with a Spike & Range, telling us to look for buying opportunities below the range using seller-failures in the ‘battle zone’ tomorrow.

Nasdaq is bullish and trying to re-test today’ wedge high, but recent price-action, combined with a short-term trading-range are telling us to wait for the '2-Try Rule' and a better location tomorrow.

Gold is bearish and trying to finish off the quad-down target tomorrow, but a two major support levels are telling us to wait for a better entry signal.

Euro is bearish and trying to re-test the lows tomorrow, but a rising support trend-line tells us to watch for the buyers to look for traps, and sell into their failure.

Crude Oil Trading Strategy
Crude Oil is bearish and trying to re-test today’s low, but tomorrow’s inventory report, combined with this short-term bull channel may give the buyers the window of opportunity they need to send price back to the prior day high.

First of all, the market is still bearish, we haven’t seen enough strength from the buyers to take control.

Second, if price rises higher, I’m looking for selling-opportunities up above this bear channel in the ‘battle zone’ to make it easier to avoid selling into support levels below.

Third, if price pushes lower, I assume buyers will try to buy the “trap low” below 47.45 so I need to wait and see them fail before looking for selling-opportunities back down to the lows.

Lastly, we can’t forget about the weekly inventory report tomorrow.  This news has the potential to complete reverse this trend overnight, so keep your mind open to both sides, giving the bears the short-term edge until proven otherwise.

Crude Oil S/R Levels for Wednesday:
48.50, 48.20, 47.90, 47.60, 47.30, 47.00

E-Mini S&P Trading Strategy
E-Mini S&P is bullish with a Spike & Range, and as we can clearly see, the buyers rejected the higher prices to start today’s session and have been trading on low volume going sideways ever since.

The most important thing for the buyers is to stay patient and look for the sellers to try and reverse this trend, digging lower on the chart, below the Trading-Range, and hopefully using the measured-move and ‘battle zone’ support areas for more reliable buying opportunities tomorrow.

E-Mini Nasdaq Trading Strategy
E-Mini Nasdaq is bullish and trying to re-test today’s wedge highs, but the most recent price-action is telling us that buyers are growing weary of buying too “high.”

The bulls got their wedge target from last night's newsletter but then collapsed off the high, telling us to stay focused on buying at lower prices tomorrow.

The Trading-Range tells us to watch for the '2-Try Rule', waiting for the sellers to try twice below the Trading-Range, preferably giving us buying opportunities in the ‘battle zone’ tomorrow for a target going back up to the high.

Gold Trading Strategy
Gold is bearish and trying to re-test today’s low, but this Spike & Range, combined with the prior month high are telling us to beware trying to sell until we see a better signal.

The prior month high appears to be strong support, which tells us to look for selling-opportunities up in the ‘battle zone’ to avoid selling into support, or look for a strong break down and then sell the “trap high” with a target down to the lows and possibly all the way down to the “quadruple-down” for a runner target.

Euro Trading Strategy
Euro is bearish and trying to re-test the measured-move again tomorrow, but this rising support trend-line appears be standing in our way.

Today’s bear channel and measured-move both tell us the odds are on our side that we go back to the re-test the low, all we need is the entry pattern.

If price goes higher, I would like to see the buyers try twice so I can sell the second attempt failure. 

If price goes lower, I assume that buyers will try to buy the “trap low” so I’m waiting for them to fail for a selling-opportunity back down to the low.

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