Trading with Confluence Levels
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We’re back in the action once again after a Holiday Weekend, and this time we’re watching key levels of confluence for the most reliable trades on Wednesday morning…
Crude Oil appears bearish at first glance, but the recent 123-Reversal tells me to look for the beginning of a short-covering rally using a key support trend-line.
E-Mini S&P is bearish into a range, and I have my eyes on sell set-ups using key confluence levels above the range on Wednesday morning.
Nasdaq is bearish with a flag pattern, which is always a bit tricky, so we’re mapping out the plan for BOTH sides tomorrow morning.
Gold is bullish and trading to go back into last week’s range, but it’s TODAY’s range that gives me the biggest clues for Wednesday.
Euro is bearish and we’re going to keep looking to sell into the bull breakouts tomorrow morning.
Crude Oil Looks Bearish, But Look Closer…
Crude Oil is bullish after a 123-Reversal, which tells me to look for long set-ups using key support levels below the range.
Knowing this, I want to use the support trend-line coming up from the higher-lows to catch the sellers on the wrong side of this market.
But I’m also keeping my eyes open for a short-covering rally, which will be very aggressive, and the best set-up will be a bear-trap at the low of a new channel.
E-Mini S&P is Going into a Range…
The E-Mini S&P is bearish with a channel, and my plan is to look for short set-ups above the high of this channel.
The trading-range is another important clue because it tells me to use the range-expansion levels as key resistance overhead.
Speaking of key levels, we have a confluence level using the reversal-line in combination with the range-expansion line which will be excellent to find some short-side trades tomorrow morning.
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Nasdaq is Bearish with a Flag…
Nasdaq is bearish with a tricky flag pattern on the chart, which reminds me to wait for trades either above the high or just below the low.
The flag is tricky to trade because I need to avoid selling into the rising support trend-line.
Another area of confluence is the combination of the high of the flag pattern with this key reversal-line around 6707, which may provide some easy trades going short.
Gold is Going Back into the Triangle…
Gold is bullish after buyers tried (and failed) twice, which tells me to look for buying opportunities at key support levels.
The trading-range is another big clue because it tells me to look for long set-ups using the range expansion.
The range expansion, combined with the hidden support trend-line coming up from below, is another example of major confluence levels we can use for our trading tomorrow morning.
Euro Just Rolling Along…
The Euro is bearish as it keeps rotating back and forth inside this big bear channel.
But the trading-range is the big clue because it tells me to look for selling-opportunities using buyer-failures and the ‘2-Try Rule’ above the range high.
And don’t forget about those hidden trend-lines overhead because they are giving us even more levels of confluence to incorporate into our trades tomorrow morning.
