8 Trades for Wednesday | SchoolOfTrade Newsletter 11/22/16

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Crude Oil is bearish and trying finish off a measured-move tomorrow, but there is a rising support trend-line standing in the way.

E-Mini S&P is bullish and trying to push through the resistance at today’s new all-time high.

Gold is bearish, trying to re-test the low, and trading at the high of a channel.

Euro is bullish and trying to finish rotation back to the high of a trading-range, and the FDAX is bullish, trading at the high of a bull flag, and trying to re-test the high of day from earlier in the session

Crude Oil is bearish and trying finish off a measured-move tomorrow, but there is a rising support trend-line standing in the way, which tells the bears to look for a breakout-pullback below the trend-line for a move back down to the lows.  One thing to keep an eye on tomorrow will be the prior month low at 47.23 which, unless we blow through it easily, will likely create some consolidation, so focus on ‘selling high’ if price stalls out around the low and the target is the low of the channel and the measured-move.

E-Mini S&P is bullish and trying to push through the resistance at today’s high.  The bulls look quite strong coming off the lows of the range and the bull channel tells us to expect the buyers to get a pullback and a re-test the high but I’d rather not buy the high of day, so my plan will be to look for a ‘trap’ around the reversal-lines listed below with a target going back to re-test the high and a runner to a measured-move tomorrow.

Gold is bearish, trying to re-test the low, and trading at the high of a channel this evening but the measured-move and rising support trend-lines are standing in the way, which may give the buyers an opportunity to run this price higher.  The bears want to sell the high of this channel, but they don’t want to sell into support, so the best option is for a breakout-pullback below the trend-line for a target going back to the lows.  The buyers also have an opportunity, if they can get a strong push higher and then hold above the reversal-line at 12.8 they should be able to reach the measured-move and possibly a re-test of the high.

Euro is bullish and trying to finish rotation back to the high of a trading-range this evening after the sellers tried and failed to break free of the range.  The bulls appear to be running into a minor resistance trend-line overhead, so the most reliable buying opportunity will be using a breakout-pullback above the trend-line for a target going back to the high of the range.  Once back to the high of the range, buyers then need to be careful trying to buy the breakout because of the measured-move, so our focus will be looking for a failure at the high for a selling-opportunity back down to the low.

FDAX is bullish, trading at the high of a bull flag, and trying to re-test the high of day from earlier in the session.  We had a large gap overnight and buyers rejected the idea of buying the highs and let price pull back to fill the gap, forming a bear channel or a bull flag.  The bulls will be looking for buying opportunities above the high of the channel using a breakout-pullback, or at the low of the channel using a seller-failure.  Sellers on the other hand, will be looking for the buyers to fail so they can sell the high of the bear channel, or a strong break down below the low of the channel for a move back to yesterday’s low.