Thursday, September 28, 2017

How to “Fade” the Breakout | Crude Oil, Emini, Nasdaq, Gold & Euro



“Just as your car runs smoothly and requires less energy to go faster and farther when the wheels are in perfect alignment, you perform better when your thoughts, feelings, emotions, goals, and values are in balance.”


Crude Oil is bearish price collapsed off the range highs today, but now we’re back down at range lows, so we’re using the '2-Try Rule' to look for buying opportunities back to $52 tomorrow.

S&P is bullish with multiple channels for tomorrow, but the real issue is looking for either a ‘2-legged pullback’ or a successful breakout-pullback to avoid the prior week high.

Nasdaq is bullish and trying to re-test the high, and a short-term Trading-Range tells me to focus on the '2-Try Rule' for buying opportunities tomorrow.

Gold is bullish with a channel, so my plan is to use “rotation” to find the most reliable buying opportunities with a target going up to $1300 tomorrow.

Euro is bullish with a Spike & Range, which tells me to look for seller-failures down in the ‘battle zone’ for buying opportunities tomorrow.


Crude Oil Trading Strategy
Crude Oil is bearish after a strong move off the highs earlier today, which tells me to expect the sellers to make another attempt to reach the prior week and monthly highs, but that move lower may not last because we’re trading down at the low of the weekly range, and buyers will be looking to “fade” this breakout back into the range tomorrow.

One thing to keep in mind for tomorrow is the end of the week and month.  This strong move lower may be successful at holding this price down tomorrow, so watch for a short-term trading-range to develop around the prior highs, and focus on buying & selling the edges, going back into the range.
  
E-Mini S&P Trading Strategy
E-Mini S&P is bullish with multiple channels in plan for tomorrow, telling me to use “rotation” to find the most reliable buying opportunities.

The weekly channel provides me with a target overhead, and the most recent channel tells me to focus on buying the lows.

The big issue is the measured-move and prior week high resistance levels around 2508, telling me to look for buying opportunities after either a ‘2-legged pullback’ or a successful breakout-pullback to new highs tomorrow.


E-Mini Nasdaq Trading Strategy
E-Mini Nasdaq is bullish and trying to re-test yesterday’s high, but a short-term triangle/range tells me the '2-Try Rule' is going to be my biggest clue for tomorrow.

My goal is to keep buying low, down in the ‘battle zone’, using the '2-Try Rule' to look for seller-failures.  If price goes higher, my plan is to watch the sellers try twice, and assuming they fail, look for opportunities to get in on the way back up to the high.

Gold Trading Strategy
Gold is bullish and trying to finish channel rotation back up to the measured-move target, and possibly the 1300 round number target tomorrow.

The channel is our biggest clue, so my plan for tomorrow is to use “rotation” to buy the lows and take profit at the highs while avoiding the prior week low as we wrap-up the week.

Euro Trading Strategy

Euro is bullish with a Spike & Range, which may end up being a bull flag tomorrow, which tells me to look for buying opportunities below the low of the triangle, using the low of the flag and the ‘battle zone’ as support levels with a target going back up to re-test the high.

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