This BEAR TRAP BREAKOUT Could Be BIGGEST Trade of the Week!
One day left, let’s make it count!
Markets are bullish after today’s range reversal, and it’s safe to assume we’ll see more sellers waiting at these highs…
But look closer at the chart and you’ll see (3) reasons why this recent pullback might be nothing more than a bear trap!
Emini and Nasdaq are bullish as price “rotates off the low” of today’s range – sellers will likely be waiting at these highs, but it smells like a bear trap!
Crude Oil is bullish, and I’m definitely open to another leg higher, but this *perfect pullback* resistance zone tells me to watch for bull traps too!
E-Mini S&P (ES):
Emini is bullish as it rotates off the low of today’s range.
Buyers will be looking for entries on the way back up to today’s high, while sellers wait for opportunities to short another reversal off major highs.
Keys to Success:
- Bear Bias, Rotation off the low
- Up: Buy Bear Traps and Pullbacks, Sell Reversals
- Down: Buy Bear Traps & Double-bottoms, sell bull traps
E-Mini Nasdaq (NQ):
Nasdaq is bullish with buyers trying to finish a rotation thru today’s high.
Buyers will be looking for breakouts higher, while sellers look for ways to short the pops above the highs.
Keys to Success:
- Bear Bias, Rotation off the low
- Up: Buy Bear Traps and Pullbacks, Sell Reversals
- Down: Buy Bear Traps & Double-bottoms, sell bull traps
Crude Oil Futures (CL):
Crude Oil is bullish and buyers are trying to punch back up into the range above, but the overall bear bias tells us sellers are likely waiting for bull traps to short back down to the lows again!
Keys to Success:
- Bear Bias, Range Rotation
- Up: Buy Breakouts, Sell Bull Traps
- Down: Sell Bull Traps, Buy Double-bottoms
