Trading the News Breakout | SchoolOfTrade Newsletter 03/15/17

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Crude Oil is bullish and trying to reach the Inventory target at 49.34 tomorrow, but we have two important clues telling us this market is likely over-extended and to wait for a ‘trap low’ for the best buying opportunities tomorrow.

S&P is bullish and trying to re-test today’s high, but the ‘No Trade Zone’ is just a few points overhead, so we have a specific plan to avoid getting caught ‘buying high’ tomorrow.

Gold is bullish and hunting for a target up at 1228.4, but two levels of resistance on the chart are telling us the most reliable buying opportunities will be after a short-term pullback.

Euro is bullish and hunting for the news target waiting overhead, but we have two important levels of resistance telling us to resist the temptation to chase this move and look for a pullback.

FDAX is bullish, but trading at the high of a channel tells us to be patient to ‘buy the dip’ on the way to the Double-Up target at 89.5 tomorrow.

We survived the FOMC Announcement and 25 basis points later, we have some incredible moves to work with tomorrow, so major targets within reach, and as always, I have a reliable plan of attack for Thursday’s session.

Crude Oil

Crude Oil is bullish and hunting for the Inventory News Double-Up at 49.34 this evening, but we look over-extended at the high of the channel and trying to break-out of the range we started with today.  The day started with a spike & range, which gave the bulls excellent opportunities to buy the lows today, but now we’re trying to break to new highs, which tells us to avoid buying this high, and look for that fake-out breakout pullback tomorrow.

E-Mini S&P

E-Mini S&P is bullish and trying to re-test the triple-up target it reached earlier in today’s session.  The bulls have control, and trading at the low of the spike & channel is a great place to look for buying opportunities, but this ‘No Trade Zone’ between the Double-Up, measured-move, and triple-up are telling us to be careful getting too aggressive.  The plan for tomorrow is to look for a ‘trap low’ if price tries to shoot higher, and look for seller-failure if we get the pullback into the ‘battle zone’ tomorrow.  No matter what happens, the target is back to re-test the high, we just need to find the entry at this point.

Gold

Gold is bullish with a spike & channel, which appears to be developing into a wedge this evening as it tries to finish off the measured-move and Double-Up targets waiting overhead.  The plan for a spike & channel is very simple; buy the low of the channel and look for failures down around the ‘battle zone’ for a move back up to re-test the high.  The wedge also gives us a great target as well, lined up with the measured-move, but in all reality, we know that FOMC news breakout will most likely have buyers hunting for that Double-Up tomorrow.

Euro

Euro is bullish and trading at the high of a spike & channel this evening, which tells us to avoid chasing this move higher and wait for buying opportunities at previous levels of support.  This move is hunting for the Double-Up target at 08119, and although we would love to buy the low of the channel, we may not get that opportunity, so we will be watching for a spike & range to develop into the measured-move and look to buy with traps below the lows.

FDAX

FDAX is bullish and trading at the high of a channel this evening, telling us to beware chasing this move higher, and stay patient looking for ways to buy the dip tomorrow with traps and failures at previous levels of support.  This strong push higher tells us, that although we would love to see rotation back to the low of the channel, we may end up with a spike & range tomorrow, and our plan will be to look for buying opportunities at the lows with a target at the Double-Up at 12089.7.