3 Best Pullbacks (and a Reversal) for Tuesday
Welcome back – let’s get to work!
Everything’s bullish going into Tuesday morning, and with such a strong run higher today, it’s safe to assume everyone’s looking for pullbacks…
Emini is bullish, and a resistance trend-line tells me to look for a 2-legged pullback for the best entry…
Nasdaq is bullish, and this afternoon’s trading-range tells me the best pullback will likely be a “seller failure” below the range…
Crude Oil is bullish too, and with today’s range well below us, I’ll be looking for a breakout-pullback entry as well…
And don’t count out the sellers – no matter how strong this bull trend is, there’s always potential for a reversal. Here’s my favorite…
E-Mini S&P (ES):
E-Mini Keys to Success:
The Emini is bullish with a series of trading-ranges on the chart tonight. The strength of this last move higher suggests that buyers will be looking for a retest of the highs at some point tomorrow.
Buyers will be looking for ways to use this trading-range as a support level getting long back to the highs, and if their successful, a possible run up to the next major resistance area at 4650.
Sellers need to stay patient until they take control of this market again, which is certainly possible given this range acting as a price-magnet below us.
If sellers can take control with a 123-Reversal, look for a move back into the original range from this morning (4560) then down to Friday’s close at 4533.
E-Mini Nasdaq (NQ):
Nasdaq Keys to Success:
After starting the day in a range, buyers took control on the Nasdaq with a strong run higher to finish their “pendulum-swing” target overhead and appear to be developing into a new range into the close.
Ranges act like magnets, and with such a strong bullish run higher, we can assume buyers will be looking for buying opportunities at support levels below the range or breakouts going higher to complete a measured-move.
Sellers need to stay patient right now – it’s hard to call a top in a strong bull trend like this, so best to wait for a 123-Reversal pattern and short the first pullback on the way back to today’s low.
Crude Oil Futures (CL):
Crude Oil Keys to Success:
Crude Oil started bullish, went sideways into a range for a while, then shot higher with a strong “open-loop” for the bulls to finish the day.
Buyers have control, and we can assume buyers will be looking for buying opportunities on the next pullback to “close the loop” back to the highs.
Sellers need to stay patient until we see either (a) exhaustion at these highs, or (b) a 123-Reversal pattern to give momentum back to the bears.
