Four Fake-Out Breakouts to Trade on Tuesday

Where’s my favorite entry setup for Tuesday?

We have ranges everywhere on the charts tonight, which means the best entries (and exits) will be around the “edges” of today’s trading-range…

Where should you look?  Focus on major support/resistance levels just outside the range, and whatever you do, don’t fall the fake-out breakout!

E-Mini Keys to Success:

• Market tumbles lower, rebounds back into range, will we go sideways?  Pullback?  Go higher?
• Bulls Want to Buy Pullbacks below the range, or breakouts going higher.
• Bears Want to short the highs with reversals, or trade reversals back down again.

Best Setups for Tomorrow: 

• [DOWN] – Shallow pullback trap, deep pullback failure to buy (or) 123-Reversal to sell
• [UP] – 2-Try breakout to buy (or) crown reversal to sell at all-time highs
• [SIDEWAYS] – sit on hands, wait for a breakout

Crude Oil Keys to Success:

• Range-bound market, sellers failed pendulum swing rotation, giving bulls firm control as they try to retest highs at $54.00
• Bulls Want to buy a pullback or trade the breakout higher
• Bears Want to short above the range, using it as a magnet.

Best Setups for Tomorrow:

• [DOWN] – Nested Failure to buy (or) crown reversal to sell
• [UP] – 2-Try breakout & 123-breakout to buy (or) crown reversal to sell
• [SIDEWAYS] – find new range, fade the breakouts, buy low with seller failures.

Gold Keys to Success:

• Bullish into a range, sellers looking for pendulum swing, buyers try to hold them off
• Bulls Want to buy support below the range or buy a bull breakout
• Bears Want to short above the range or trade the 123-Reversal

Best Setups for Tomorrow:

• [DOWN] – nested failure to buy (or) 2-try trap to sell
• [UP] – 123-breakout to buy (or) crown reversal to sell
• [SIDEWAYS] – sit on hands, wait for a breakout