Trading Non-Farm Payroll Friday | SchoolOfTrade Newsletter 04/06/17

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Crude Oil is bullish with a spike & channel, which tells us to use the ‘battle zone’ for buying opportunities tomorrow, but watch for two (2) big levels of resistance overhead to cause some trouble if price tries to push higher.

S&P is bullish and trying to re-test the wedge target from earlier today, but we’re running out of open space above us, so the plan is to look for traps or a successful breakout-pullback to new highs tomorrow.

Gold is bearish and trading inside a range, which tells us to look for two (2) scenarios on Friday.

Euro is bearish and trying to finish a measured-move tomorrow, but two (2) levels of support are telling us to look for traps up in the ‘battle zone’ of a breakout-pullback below a triangle tomorrow.

FDAX is bullish with a spike & channel this evening, but we have a major resistance level in our way, so the bulls will be watching for two (2) scenarios tomorrow.

Tomorrow is ‘Non-Farm Friday’ which means we have some of the biggest news of month only 12 hours away.  The news is a big variable for tomorrow, but that won’t stop us from planning our trades, so we can trade our plan on Friday morning.

Crude Oil

Crude Oil is bullish with a spike & channel, trading at the ‘Double-Up’, just a few pennies below yesterday’s high, ahead of tomorrow’s Non-Farm Payroll report.  The spike & channel tells us to look for traps and failures below the low of the channel, and the two levels of resistance overhead pose a serious concern.  We’d love to see this price pullback off these highs, but if price pushes higher, we need to see strength, and a successful breakout-pullback if we are going to have the confidence in a move higher tomorrow.

E-Mini S&P

E-Mini S&P is bullish and trying to re-test the wedge and measured-move target(s), and possibly the prior week high before we finish the session on Friday.  The bulls made a nice run to the end of the wedge, they got a nice deep ‘trap low’ to allow them to buy it cheap again, and now the target is a re-test of the high.  The bulls will want to participate in this move back to the highs, but if you’re not in the move already, the most reliable buying opportunities will come with traps because of the lack of open space overhead, or a successful breakout-pullback above the measured-move for a target at the previous week high.

Gold

Gold is bearish and trading inside a range this evening after the sellers went ‘two legs down’ earlier in the session.  The ‘Double-Down’ and trading-range are big clues for tomorrow; the bears want to sell above the range in the ‘battle zone’, or look for a successful breakout-pullback below the Double-Down with a target going down to yesterday’s low. 

Euro

Euro is bearish and trying to complete a measured-move tomorrow, but the ‘Double-Down’ support level, combined with what may be the low of a triangle both tell the sellers to look for ways to avoid selling into this support.  The most reliable selling-opportunities will be up in the ‘battle zone’ overhead, or after a successful breakout-pullback below the support level.

FDAX

FDAX is bullish with a spike & channel this evening, but this ‘Double-Up’ resistance level is a little too close for comfort, so the buyers will be wise to avoid buying into this resistance, looking for either a pullback into the ‘battle zone’ or a successful breakout-pullback going higher tomorrow.