7 Trades for Tuesday | SchoolOfTrade Newsletter 01/30/17

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“Get around people who have something of value to share with you. Their impact will continue to have a significant effect on your life long they have departed.”

Crude Oil is bearish and trying to finish off the measured-move tomorrow, but it’s likely we see a ‘trap high’ up around the ‘correction zone’ tomorrow for the most reliable selling-opportunities. 

E-Mini S&P is bullish and trying to make up for lost ground after today’s session opened with a big gap down over the weekend. 

Gold is bullish after contract rollover, and trying to re-test the round number at $1200 tomorrow, and the bull channel tells us to be looking for the most reliable opportunities below the most recent swing on the chart. 

Euro is bullish and trying to re-test today’s high after a wild ride on both sides today. 

FDAX is bearish, trading at the ‘battle zone’, and looking for a re-test of the low tomorrow and possibly a GAP fill from last week’s big bull run. 

Crude Oil

Crude Oil is bearish and trying to finish off the measured-move tomorrow, but it’s likely we see a ‘trap high’ up around the ‘correction zone’ tomorrow for the most reliable selling-opportunities.  The sellers have control and will be looking to ‘sell high’ tomorrow, so the best option is anything above the falling resistance trend-line with a target going back to the low.  If price pushes lower, we want to avoid selling low so we will look for ‘traps’ above short-term swings as well.  Buyers on the other hand, need to stay patient until they take control, which requires a strong, successful breakout-pullback above the falling resistance trend-line.

E-Mini S&P

E-Mini S&P is bullish and trying to make up for lost ground after today’s session opened with a big gap down over the weekend.  The bulls have control, but testing the Double-Up target isn’t a very good place to buy, so the ideal situation would be a pullback into the ‘battle zone’ below the low of the channel which would give the buyers enough room for a target back up at the highs.  If price continues to push higher it will confirm this strong move higher as ‘irrational’ and we would be wise to look for a spike & channel and keep an eye out for bear ‘traps’ below short-term swings tomorrow.  With that said, we are above 50% of the way off today’s high, which leaves potential for sellers to come back into this market for a re-test of the lows, but they need to get control first, which will require a strong, successful breakout-pullback below the low of the channel.

Gold

Gold is bullish after contract rollover, and trying to re-test the round number at $1200 tomorrow, and the bull channel on the chart tells us to be looking for the most reliable buying opportunities below the most recent swings on the chart.  As you can see, there aren’t too many candlesticks on the chart because the volume is extremely low due to the bi-monthly contract rollover on Gold Futures so tomorrow will a day of playing ‘catch up’ when it comes to the overall volume in the market.  The most important thing to keep in mind for tomorrow is to ‘buy low’ as we get closer to the $1200 round number, and resist the temptation to sell until the bears can take control with a strong move lower and a successful breakout-pullback.

Euro

Euro is bullish and trying to re-test today’s high after a wild ride on both sides today.  There are a few variables on this chart, but what we DO know for sure is that the bulls have control and we have a spike & channel to work with tomorrow.  The big challenge for the bulls will this falling resistance trend-line, which will become active if price pulls back into the ‘correction zone’ tomorrow.  The bulls want to buy low, but they won’t be interested in buying into a resistance trend-line, so the path of least resistance is to get a breakout-pullback above the trend-line with a target up at the high.  With that said, the resistance trend-line will open the door for the sellers to take control, and they can do so with a strong push lower that can hold a pullback below the ‘correction zone’ tomorrow.

FDAX

FDAX is bearish, trading at the ‘battle zone’, and looking for a re-test of the low tomorrow and possibly a GAP fill from last week’s big bull run.  The bears have control and they barely missed their measured-move target, so we assume sellers will be hunting to re-test that low tomorrow.  One thing to keep an eye on is this rising support trend-line, which tells the bears to look for a successful breakout-pullback below the trend-line and use it as resistance on the way back down again.  Any time we have a rising support trend-line it always opens the doors for the buyers to take control, but they need to show us some continued strength going higher before that happens tomorrow.