Find the Best Entry Price with these Spike and Channels
This end of month volatility isn’t over yet – new month and more big news coming tomorrow…
Everything is bearish going into December 1st, and we have a handful of “spike and channel” patterns telling us exactly where to find the best entries…
Emini has a bear spike and channel, so I’m looking for shorts up near the “base” of that channel…
Nasdaq is bearish with a Spike & Range pattern – but unlike the Emini, there’s a support trend-line coming up from the lows which might give buyers a chance to grab a reversal back to the highs…
Crude Oil is bearish too, and an “overshoot” of the spike and channel tells me exactly where I should be watching for another short tomorrow morning…
E-Mini S&P (ES):
E-Mini Keys to Success:
As we expected in last night’s newsletter, sellers were waiting to run the Emini lower today, which ended with bears in control of a spike and channel pattern.
Spike and channel patterns tell sellers to look for shorts up at the “base” of the channel overhead. There’s also a small range at these lows, and sellers can look for breakouts going lower also.
Buyers need to stay patient for a change in momentum, such as a 123-Reversal tomorrow morning.
E-Mini Nasdaq (NQ):
Nasdaq Keys to Success:
As expected, buyers retested yesterday’s high on Nasdaq this morning, but they couldn’t hold it and price collapsed lower into a range to finish today’s session.
This range is a price-magnet, so sellers will be looking for shorts at resistance levels above the range or qualified breakouts going lower.
Buyers need to stay patient until momentum changes in their direction, and this support trend-line coming up from below might give them the opportunity to take control with a 123-Reversal into hidden channel pullback on the way back up to the highs.
Crude Oil Futures (CL):
Crude Oil Keys to Success:
Bears took control of Crude Oil this morning into a trading-range, followed by a breakout to complete the measured-move before pulling back off today’s low.
Sellers have a strong run lower, suggesting another leg in the same direction – sellers can look for shorts off the top of this channel, along with the underbelly of this trading-range.
Buyers have a nice bounce off today’s low, but they need to “hold” the next pullback before we can be sure they have momentum on their side.
