Trading False Tops with Reversals & Traps
We’re heading into the final trading session of the week on Thursday, and with everyone waiting on news from OPEC, ECB, and the FED, we need to be ready for many different scenarios…
Emini ES is bullish with a “false top”, Gold is bearish into a range, and Oil is range-bound ahead of tomorrow’s announcement – we have a lot to cover in tonight’s newsletter – roll those sleeves up and get to work!
Oil Buyers Might Be Walking Into a Trap…
Crude Oil is range-bound this evening, which tells me to focus on failures, buying low, selling high, and avoiding the middle on Thursday…
But this recent bull spike messed everything up, taking away the “easy set-ups” and leaving us with “traps” for entries tomorrow morning.
This False Top on the E-Mini is a BIG Clue…
E-Mini S&P is bullish with a strong run higher today, but look closely and you can see a “false top” at the highs, which is a trap waiting to happen…
And speaking of traps, that’s exactly the pattern I’m going to rely on to buy the deep pullback tomorrow morning.
Gold Bears Look to Short the Bounces Here…
Gold is bearish and trading sideways in a range, which tells me to wait for sell setups using buyer-failures above the range tomorrow morning…
I’m also looking for longs on Gold too, using 123-reversals off the “magnet” support waiting below, or 2-Try Traps if the buyers start racing higher.
