June 20, 2017
- in Uncategorized by schooloftrade
Wedge Day Trading Strategy | Crude Oil, Emini, Gold, Euro, FDAX
“Pressure makes diamonds… or dust…which one are you going to be?” – Joseph James
Crude Oil is bearish with a wedge, which tells us to look for failures and traps at resistance levels ahead of tomorrow’s Inventory Report.
S&P is bearish and rotating off the low of a channel, so we’re looking for selling-opportunities up at overhead resistance for a target back to yesterday’s low.
Gold is bearish with a Spike & Range, so we’re looking for selling-opportunities using resistance levels overhead with a target back down to the low.
Euro is range-bound and we’re using the ‘2-Try Rule’ to look for buying opportunities going back inside the range tomorrow.
FDAX is bearish, and we’re looking for selling-opportunities up in the ‘battle zone’ for a target down at the ‘weekend gap’ tomorrow.
Crude Oil Trading Strategy
Crude Oil is bearish and trying to finish off a wedge target ahead of tomorrow’s Inventory Report. The API report just came out and gave the sellers a perfect ‘trap high’ and looking for a move back to re-test today’s low.
Unfortunately, it’s too late to chase this move now, so the next selling-opportunities will come with another ‘trap high’ after we see more confirmation lower.
One thing to keep in mind for tomorrow is that we often see short-term trend reversals ahead of the Inventory Report, so don’t stay married to the bears, and keep an open mind going into Wednesday.
Crude Oil Inventory Levels for Wednesday:
44.55, 44.17, 43.79, 43.41, 43.03, 42.65
E-Mini S&P Trading Strategy
E-Mini S&P is bearish and rotating off the low of a channel as it tries to re-test the prior day low. The ‘battle zone’ would really make for the best selling-opportunities tomorrow, but we will also be watching the resistance trend-line overhead for failures as well.
Gold Trading Strategy
Gold is bearish with a Spike & Range, which tells us to avoid selling low, and focus on selling above the range high with failures and traps tomorrow.
One thing to keep an eye on is the resistance trend-line overhead, which may be our best resistance to avoid selling into the prior day low, which appears to be acting as major support.
Euro Trading Strategy
Euro is range-bound and the sellers have now tried twice to break out of this range, which tells us to look for buying opportunities going back up into the range tomorrow.
One thing to watch is this rising support trend-line, which tells us to look for a small ‘2-legged pullback’ for the most reliable buying opportunities going back into the range.
FDAX Trading Strategy
FDAX is bearish and trying to fill the weekend gap, and this bear channel tells us that sellers will be looking for opportunities to sell up at resistance levels overhead with a target back down to re-test the low.
We’re watching the ‘battle zone’ resistance overhead, while keeping an eye on a possible Spike & Channel as price pushes lower tomorrow.
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