This Wedge Looks Great for a Short
Welcome back guys, got some nice setups on my radar for Tuesday…
Crude Oil is bullish after a strong bounce off today’s low — but with multiple ranges below us and channel resistance above us, I’ll be looking for a short if these buyers start to struggle…
The Emini is bearish into a range tonight, so I’ll be looking for shorts at resistance above the range, along with breakouts going lower on Tuesday. My only challenge is, there’s a trend-line in my way!
Nasdaq is also bearish, ending today’s session with a strong bounce off today’s low. We do look bullish at first glance — but once you see this wedge resistance on the chart, you’ll see why I’m waiting for the short instead…
E-Mini S&P (ES):
E-Mini Keys to Success:
Sellers have control on the Emini ES into a range this evening, which means sellers will be looking for shorts up at resistance levels above the range, or breakouts to new lows.
Sellers have two challenges ahead of them; momentum and a support trend-line. Knowing this, I’ll be looking for a 2-try failure to sell off the highs of this range, or I’ll need to wait to use the trend-line as resistance on the opposite side later in the session.
Buyers have two options; they can look for longs off range lows, or they can wait for a 123-Reversal and buy the first pullback off the new channel with a target up at today’s high.
E-Mini Nasdaq (NQ):
Nasdaq Keys to Success:
Nasdaq sellers took control after a reversal off the overnight highs led to a strong run lower this afternoon. Sellers completed their measured-move target, and now we’ve finished the session with a strong bounce off the lows.
Sellers are barely hanging onto control of this market right now, and with such a strong run lower, we know sellers will be looking for signs of bullish exhaustion to get short back to those lows tomorrow morning.
Buyers aren’t in an easy spot right now. They barely have any momentum without much “open space” to work with overhead. They’ll need to see some strength pushing higher to give us confidence to start buying again.
Crude Oil Futures (CL):
Crude Oil Keys to Success:
Sellers had control for the entire session today, finishing the move with a range before buyers took it higher on strength.
It’s hard to be a buyer right now – with multiple ranges just below us and trading at the high of a larger spike and channel pattern, it’s easier to wait for buyers to fail up here and look for shorts going back into the range where we came from.
Rollover Alert — Keep an eye on Crude Oil rollover to the 01-22 contract at some point this week, usually around the 18th of each month.
