5 Trades for Friday | SchoolOfTrade Newsletter 01/12/17

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“Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time.”

Crude Oil is bullish and trying to re-test the highs, but we’ve started trading sideways in the middle of today’s range, which tells the buyers to look for ‘traps’.

E-Mini S&P is bullish and trading inside a multi-tiered channel, which tells the buyers to look for trading opportunities at levels of support below the channel.

Gold is bearish and trading with a channel, so the plan is to sell the highs, but we have the $1200 round number that may spoil the fun.

Euro is bearish, trying to finish rotation back to the lows, and looking for trading opportunities up at the highs of a bear channel.

FDAX is bearish and trying to re-test the low, but a rising support trend-line is in the way and giving the buyers a big opportunity to grab control and fill the gap left open from last night’s close. 

Crude Oil

Crude Oil is bullish and trying to re-test the highs, but we’ve started trading sideways in the middle of today’s range, which tells the buyers to look for ‘traps’ and seller-failures below the range, and a successful breakout-pullback above the range for a move going back to the high.  For the sellers, they need to take control, so they need to see a strong break down that can hold a pullback for a re-test of the low.

E-Mini S&P

E-Mini S&P is bullish and trading inside a multi-tiered channel this evening, which tells the buyers to look for trading opportunities at previous levels of support below the low of the channel for a move back up to re-test the high.  The buyers have control, and they would love to see price pull back to the reversal-lines waiting below the channel on the way up to filling the gap from yesterday evening’s close.

Gold

Gold is bearish and trading with a channel on the way back to re-test today’s low.  The bears have control and will be looking for selling-opportunities at the high of the channel, as well as levels of resistance above the high of the channel.  The big variable on the chart is the $1200 round number, which will likely be a price-magnet for a few days until this market finds balance again.  With the buyers failing to re-test the high earlier in the session, we expect the sellers to try and finish rotation back to the lows, but if they fail, I assume price will find its way back up to the $1200, where we will be watching for a trading-range to develop tomorrow.

Euro

Euro is bearish and trying to finish rotation back to the lows, but trading at the low of a bear channel tells the sellers to be looking for the most reliable trading opportunities up at the highs of the channel and other levels of resistance to allow them to ‘sell high’ tomorrow.    Buyers on the other hand, will need to wait for price to get back above the resistance trend-lines overhead for a successful breakout-pullback back up to the highs.

FDAX

FDAX is bearish and trying to re-test the low, but a rising support trend-line is in the way and giving the buyers a big opportunity to grab control and fill the gap left open from last night’s close.  The bears had an overshoot of the low of the channel, which is now correcting higher, and sellers would love to sell high, but they won’t be excited to sell into the support trend-line, so the only option is to get a higher price, or a breakout-pullback below the trend-line.  With that said, the buyers can hold the next pullback and take control, and their target will be a move back to re-test the high and fill the gap at 54.5 tomorrow.