Crude Oil and the E-minis are treading water, while Gold collapsed back down to quarterly lows, both of which putting the emphasis on sideways ranges on Wednesday…
And my favorite way to trade those balanced, range-bound markets is to use expanding…
Crude Oil and the E-minis are treading water, while Gold collapsed back down to quarterly lows, both of which putting the emphasis on sideways ranges on Wednesday…
And my favorite way to trade those balanced, range-bound markets is to use expanding triangles as key support and resistance levels – are you ready?
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Crude Oil is bullish, but we’re back up to the 57.17 “half back” resistance level we discussed in last night's newsletter – which isn’t a reliable place to start buying…
The good news is – we’re trading inside a range, which gives us an easy plan of attack – buying underneath the range using a seller-failure pattern.
E-Mini S&P is bearish and sitting on the support trend-line we discussed in last night's newsletter, which isn’t a great place to be selling…
The challenge is, we’re too bearish to buy, and too low to sell into this support…
Our best options are to either (a) wait for a 123-Breakout to sell the market as it runs lower, or (b) look for a crown-reversal pattern to buy going back up to this morning’s high.
Nasdaq is bullish and sitting right in the middle of the range from Monday, which tells me to look for buy set-ups using seller-failure patterns underneath the range tomorrow morning.
The biggest clue, however, is the expanding triangle, which is a perfect support level to use in combination with a seller-failure pattern to buy on Wednesday.
Gold is bearish with a strong run lower, all the way down to major support, which means it’s too late to start selling, and I need to wait for a pullback to resistance…
And I have my eyes on the high of a Hidden Channel, and a reversal-line up at 1492.6 for reliable areas to look for sell set-ups tomorrow morning.
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