8 Trades for Thursday | Crude Oil, Gold, E-mini & Euro Futures 09/07/16

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Notes for Tonight’s Newsletter:

We have some great opportunities ahead of us with some big news pending, strong trends and trading ranges to work with in tomorrow’s session; Crude Oil is bullish, Gold is bearish, while the S&P and Euro are both trading sideways ahead of the opening-bell in Asia.

Crude Oil is bullish and trying to finish the measured-move up to the highs of a bull channel this evening; The bulls have control and will be looking to buy pullbacks on the way up to the targets listed above but with such strength on the way higher we may only get a spike & channel or a spike & range to work with so short-term buyers should be looking to buy with traps below support levels.  Sellers have zero proof at this time, and we assume that any pullback off these highs will be seen as a buying opportunity for the bulls so we can’t even think about selling until we see a strong break-down for the sellers and hold below the battle zone lows at 45.22.

E-mini S&P is sideways and trading at the highs of the range this evening; The bulls have control after a beautiful example of the ‘2 try rule’ at the lows of the range and now the ‘pendulum’ should swing in the opposite direction, allowing the buyers to get a breakout-pullback up to the range-expansion targets at 87.50 and 89.50 tomorrow morning before sellers try and take this price back into the range again.  Buyers will be looking for a breakout-pullback above the range-highs and sellers will be looking for that breakout to fail for a move back to the range low.

Gold is bearish and trading at the lows of a bear channel, which could also be seen as a bull flag from yesterday’s big run higher; The bears have control, but they won’t want to sell the lows of the channel into the measured-move so they either need to see a strong break-down below the lows or they need to wait for a move back towards the highs of the channel which then opens the door for the buyers to take control and make a run back to the highs.  Buyers would love to see a short-term breakout-pullback for a move back to the channel high and then a strong break above the 53.5 battle zone for a move back to re-test the highs from yesterday.

Euro is sideways and trading at the lows of a range this evening; Sellers have short-term control and the spike & channel tells us they will likely try for a breakout but most breakouts fail when they are inside a range which will give the buyers an opportunity to buy the lows using the ‘2 try rule’ with a target back to the highs.  Sellers need to be careful at the range lows, if they want to sell they first need to see a strong breakout and then try to sell the pullback with a target down at 12050.  The most reliable place to be selling is up at the highs of the range, so they need to stay patient.