Don’t Let this Chart Fool You on Tuesday

We’re back for another big week of trading!

We have a lot of great opportunities setting-up for Tuesday, but be careful, because the charts are misleading at first glance…

For example – the Eminis are bullish in the long-term, but look closely and you’ll see a bear market into a range going into Tuesday…

Gold is certainly bullish, but if you’re not careful, you’ll miss the best entries off the low of a “hidden” channel drawn backwards…

We’re bearish into a range on the Emini today, which means I’m looking for failures and breakout trades tomorrow morning.
Sellers have control, so they’ll be looking for sell setups at resistance levels above the range, or breakouts to new lows
Buyers have momentum on their side as price rotates off the lows, but they need to hold the next pullback with a 123-breakout pattern going higher.

Best Trades for Tomorrow:

It was a “trend day” (for the most part) on the Nasdaq today with a trading-range trying to hide in the middle of the chart.
Sellers will be looking for entries either above the range or just below the range with a target retesting the low
Buyers do have momentum on their side as they bounce off today’s low, but they’ll need to hold a pullback for the 123-Reversal to give them control tomorrow morning.

Best Trades for Tomorrow:

We have a strong bull trend with open-loop, telling us to look for pullbacks to buy low, or reversals to sell off the highs.
Buyers have momentum, so they’ll be looking for entries off the low of the channel, or breakouts to new highs.
Sellers don’t have any momentum right now, so they need to wait for a reversal setup off these highs.

Best Trades for Tomorrow:

[UP] – 2-try trap to buy (or) crown reversal to sell
[DOWN] – seller failure to buy (or) 123-Reversal to sell
[SIDEWAYS] – wait for the new range to develop, then buy below it using seller failures