3 Breakout Trades I’m Watching on Wednesday

Lots of “ranges” on the charts tonight, telling us to focus on failures and breakouts tomorrow…

The Emini is bullish into a range tonight — I’ll be looking for buy setups at key support levels below the range.  Just make sure you avoid that resistance line coming down overhead…

Nasdaq is bullish into a spike and channel – I’ll be looking for a deep pullback down into the “base” of the channel, or I’ll get aggressive with a breakout…

Crude Oil is developing into a WIDE range ahead of tomorrow’s Inventory Report – WIDE ranges are great in some ways, but more challenging in other ways. 

E-Mini S&P (ES):

E-Mini Keys to Success:

The Emini ES began in a range today, but buyers quickly got a breakout and ran price higher to complete a measured-move before pulling back off the high.

Buyers have a TON of momentum on their side, which tells us buyers will be looking for ways to get long on this pullback with a target going back to the highs.

Sellers need to stay patient for a reversal or signs of bullish exhaustion before they commit, because the odds (as of now) are very likely a retest of the highs tomorrow.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

Just like the Emini, the Nasdaq started today in a range but the bulls took it higher all the way up to a measured-move where we now see a range and possibly a spike and channel at today’s highs.

Bulls have all the momentum and will be looking for buying opportunities on the next pullback off the highs.

Sellers need to be careful trying to short this much strength.  Wait for a reversal to shift momentum, then sell the first pullback.

Crude Oil Futures (CL):

Crude Oil Keys to Success:

Crude Oil doesn’t seem to know which direction it wants to go today.  Bulls took it higher to begin the day, but lost control to the sellers late in the morning.  But sellers weren’t able to hold it either, and price shot back higher.

This type of “back and forth” price-action usually means there’s a range developing somewhere in the middle of today’s range, so the plan will be to ‘fade the breakouts’ until we see something hold.