This *FAILED* Breakout Could Be Huge!
Oh boy, here we go again!
Markets are bullish going into Tuesday, and I have a couple pullbacks on my radar… but the BIG TRADE for tomorrow is this failed breakout reversal!
Both Emini and Nasdaq are bullish and trading up near the highs of today’s range. I definitely have pullbacks and breakouts on my radar, but I really hope we get this Crown Reversal instead!
Crude Oil is bullish with a Spike and channel pattern, which gives us (2) buy zones on the next pullback. Let’s see which one triggers first!
Don’t forget – we have FOMC on Wednesday, so tomorrow’s the day to grab these trades before things get wacky!
E-Mini S&P (ES):
The Emini is bullish as price rotates off today’s low.
Buyers have control of momentum as price races up off today’s lows, likely trying to complete a pendulum-swing up around 4200.
Buyers will be looking for pullback entries down around support levels below the range, along with breakouts going higher.
Sellers need to stay patient because this bullish momentum is too strong to sell into at this point. Better to wait for a reversal off resistance above the range, or a breakout through the lows tomorrow morning.
Keys to Success:
- Bullish momentum as price rotates off today’s low
- Buyers want to buy pullbacks off support levels below the range, or a breakout going higher
- Sellers want to short resistance levels above the range, or short a breakout going lower.
- Bull breakout looks likely, bear breakout wont be easy without a strong move that can hold below today’s range.
E-Mini Nasdaq (NQ):
Nasdaq is bullish and trying for a breakout!
Bulls have control of momentum on the Nasdaq and price is trading right into major resistance above the range.
Buyers have a lot of strength behind this move, so they can look for pullback entries using a 2-try failure, or breakout trades going higher.
Sellers are in a great place to sell, but they need to stay patient for a 2-try failure to sell off these highs first.
Keys to Success:
- Strong momentum rotating off today’s low
- Buyers want to buy a pullback, or a breakout
- Sellers want to short off range highs for a move back to the lows
- Breakouts are easy for the buyers, not so much for sellers!
Crude Oil Futures (CL):
Crude Oil is bullish with a spike and channel pattern
Buyers have control of momentum and will be looking for pullback entries off support levels below this spike and channel, along with “trap” entries if we keep going higher.
Sellers have to be careful right now because of such strong momentum. They can sell a double-top reversal, or 123-Reversal going back to major lows.
Keys to Success:
- Bullish spike and channel pattern says buy pullbacks
- Buyers want to buy pullbacks, or buy breakouts
- Sellers want a reversal; double-top or 123-Reversal
- No much open space overhead, so beware bull breakouts.
