4 Spike Trades for Wednesday | SchoolOfTrade Newsletter 03/21/17

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Crude Oil is bearish with an overshoot of a channel low, and with the inventory report tomorrow we will be watching for a bullish correction, using the API levels we found this afternoon.

S&P is bearish with a spike & wedge this evening, and when we combine that with a Double-Down, we have three (3) areas of interest we’re watching tomorrow.

Gold is bullish with a spike & channel this evening, and we’re watching a key resistance trend-line to help find the ideal buying opportunities tomorrow.

Euro is bullish with a spike & range this evening, and the ‘battle zone’ will make for an excellent area to look for buying opportunities tomorrow.

FDAX is bearish with a spike & channel, and we have two (2) support levels on the chart, telling us to stay patient for a correction so we can get a better price to sell tomorrow.

We had some big moves in today’s session, with big spikes either up or down, which means we’re looking for channels, ranges, and wedges going into Wednesday trading session.

Crude Oil

Crude Oil is bearish with an overshoot of a bear-channel low ahead of tomorrow’s Inventory Report, which tells us to be looking for a bullish correction for the most reliable selling-opportunities.  Whenever we have the inventory report, we know that a bullish correction tomorrow may be strong enough to turn this into a bull-market ahead of the news tomorrow, so we will be watching for that overnight.  We also want to make sure to avoid trading into the support and resistance levels we got from today’s API report, which will be active during tomorrow’s session.

Crude Oil API Levels for Wednesday:  49.20, 48.83, 48.46, 48.09, 47.72, 47.35

E-Mini S&P

E-Mini S&P is bearish and trading with a spike & wedge this evening, which gives us the ‘battle zone’ overhead to look for selling-opportunities, as well as the target waiting below.  One thing to keep an eye on is this quadruple-down at 30.0.  We always want to beware selling into the ‘quad-down’ because that’s usually where we see the majority of profit-taking on a move lower, so make sure you see this market move through that area on strength before looking for additional selling-opportunities tomorrow.

Gold

Gold is bullish with a spike & channel this evening, and with price sitting right on top of the Double-Up we can assume the bulls got their target for the day, and now we look for buying opportunities at a lower price, such as back in the ‘battle zone’ tomorrow.  One thing to keep an eye on is this potential resistance trend-line coming down overhead, which will be a key level of support and resistance for the precise entry going back up to re-test the high.

Euro

Euro is bullish with a spike & range this evening, just a few ticks away from reaching the Double-Up target for the buyers.  The spike & range tells us the buyers have control, but without seeing new higher-highs we know that buyers will be looking buying opportunities below the previous swings around the ‘battle zone’ tomorrow for a target going back to the highs.

FDAX

FDAX is bearish with a spike & channel this evening, and with the triple-down and prior week lows acting as support, our plan for tomorrow is to look for selling-opportunities up at the ‘battle zone’ with a target going back to the low, and possibly down to the prior month close at 68.0.