4 Channels for Tuesday | Crude Oil, Gold, E-mini & Euro Futures 04/25/16

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“In warfare there are no constant
conditions.  He who can modify his
tactics in relation to his opponent will succeed and WIN.” – Sun Tzu – The Art
of War.

Notes for Tonight’s Newsletter:

Crude
Oil is bearish this evening but we’re trading into the measured-move
target which means we likely only have one more leg down before the sellers
take their profit and wait for a bullish correction
higher tomorrow possibly back to the highs of a pending bear
channel.  The short-term bear
channel tells us sellers will be trying to re-test the lows at 42.58.  The measured-move has already been tested,
and we typically see at least two tests before the sellers give up control so
we expect another run back to the lows before the sellers let this price out of
their control tomorrow.  For the buyers,
they will be shooting for the highs of the pending bear channel as a target in
the short-term and a possible run back to the highs at 44.04 if the sellers can’t
hold the channel highs after the correction.

E-mini
S&P is bullish on the way to completing the measured-move
this evening which tells us to keep looking for buying opportunities but we’re
also running into resistance overhead which will likely cause the buyers to
look for a ‘trap-low’
tomorrow before we see this move completed. 
The bull channel tells us buyers will likely keep trying to send this
price to the measured-move, and once completed we expect to see a second leg
from the buyers to complete a double-top.  We also have a pending bear channel coming
down as overhead resistance which tells us the sellers will be trying to sell
up here so the double-top into the measured-move will be easy ‘bear-traps’
as well as an opportunity for the patient sellers to get a reversal off the
highs back to the lows of the channel. 
There are two trading
ranges on the chart; the small range will likely act as support for the
buyers who will be looking for a way to buy without buying into
resistance.  The larger range may be the
most important clue tomorrow and may send price ‘rotating’
back to range lows after the buyers complete their measured-move.

Gold
is bullish and coming off an overshoot
of a bull channel high so we expect to see price rotate
back to the channel lows before trying to rotate back to the highs tomorrow but
we can also see ‘falling
resistance’ overhead which may play a key factor in how successful the
buyers are tomorrow.  The bull channel has an
overshoot which tells us to look for an overshoot at the channel lows as
well.  The trend-line coming down
overhead tells us the buyers will either be looking for a ‘trap-low’
at support below or they will need to a breakout-pullback
above the trend-line so they can use it support on the way up to channel highs
and a possible ‘double-up’
or measured-move target later tomorrow.

Euro
is bullish with a spike
& channel this evening which tells us the buyers will be looking for
opportunities using a ‘trap-low’
back at support levels below or pullbacks if they continue this move to rotate
back to the channel highs.  The bull
channel tells us the buyers will be looking for a second leg higher tomorrow,
while the spike & channel tells us to look for a ‘trap-low’ below the
channel around the ‘correction
zone’ before the buyers finish this move higher.  The measured-move will serve as a target for
the buyers tomorrow and will also be a likely for sellers to look for a trend
reversal.