5 Moving-Average Trades for Wednesday

Big day coming tomorrow, are you ready?

We have major news early in the session, and a sense of scarcity with the Holiday on Thursday – so we gotta make these trades count…

The Emini and Nasdaq are range-bound and bearish tonight, so I’ll be looking to “short the pops” above the range, or sell breakouts going lower…

Crude Oil is bullish with a strong “open-loop” on the chart tonight, and I’ll be watching for 3 potential pullbacks to get long ahead of major highs tomorrow…

Whether we’re trading breakouts, pullbacks, or reversals – remember – the moving-average is our best weapon.  Let me show you why…

E-Mini S&P (ES):

E-Mini Keys to Success:

Sellers have control into a trading-range (maybe spike and channel) on the Emini today. 

This tells us that sellers will be looking for shorts up at resistance levels above the range, along with selling breakouts going lower.

Buyers need to stay patient for a turn in momentum with a reversal going higher.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

Nasdaq is bearish into a wedge, which finished with a range.

The wedge “vertex” is major support, so sellers will be looking for shorts at resistance levels above the wedge, or breakout trades going lower.

Buyers would be smart to wait for a change in momentum with a reversal, or they can use the 2-Try Rule to pick the bottom of this range.

Crude Oil Futures (CL):

Crude Oil Keys to Success:

Crude Oil began in a range, but a strong breakout gives buyers control going into the measured-move target overnight.

Buyers have the momentum and they’ll be looking for buying opportunities on the next deep pullback, while keeping an eye out for a range, or a runaway market.

Sellers need to be careful right now – they can look for a crown reversal to short off these highs, or can wait for a 123-Reversal and sell it back into the range where we came from.