Non-Farm Payroll Strategy for Friday | SchoolOfTrade Newsletter 02/02/17

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“Learn how to separate the majors and the minors. A lot of people don’t succeed because they major in the minor things.”

Crude Oil is bearish and trading with a triangle this evening, which tells us to look for selling-opportunities up at the highs of the range with a target going back to re-test the low.  

E-Mini S&P is range-bound with a bullish bias this evening after the buyers struggled to finish the move they started at the beginning of today’s session. 

Gold is bearish and trying complete a full rotation back to the low of day, and sellers will be looking for trading opportunities up at the ‘battle zone’ resistance overhead for a measured-move target tomorrow. 

Euro is bearish with a strong move lower to finish today’s session, which tells us that sellers will be waiting for price to retrace off the lows so they can sell at a higher price tomorrow. 

FDAX is range-bound with a bearish bias this evening, which tells us to look for selling-opportunities at the highs of the range using the ‘2-Try Rule’ tomorrow. 

Crude Oil

Crude Oil is bearish and trading with a triangle this evening, which tells us to look for selling-opportunities up at the highs of the range with a target going back to re-test the low.  The bears had a nice run lower this morning, they overshot the low, overshot the high but failed to re-test the low, which tells us that sellers are in control, but they are avoiding the lows.  Our goal will be to look for buyer-failures up above the highs and avoid selling into the low until we see a successful breakout-pullback below the Double-Down.

E-Mini S&P

E-Mini S&P is range-bound with a bullish bias this evening after the buyers struggled to finish the move they started at the beginning of today’s session.  The move higher to begin the day, followed by lower-highs and higher-lows confirm the bullish range, which tells us to buy the low, sell the high, avoid the middle, and focus on failures tomorrow.

Gold

Gold is bearish and trying complete a full rotation back to the low of day, and sellers will be looking for trading opportunities up at the ‘battle zone’ resistance overhead for a measured-move target tomorrow.  The bulls started the session with control, and although it doesn’t seem likely, there is potential that buyers may have been waiting for a lower price, but they need to show us some strength and a successful breakout-pullback above the moving-average if they want to take control going back to re-test the high.

Euro

Euro is bearish with a strong move lower to finish today’s session, which tells us that sellers will be waiting for price to retrace off the lows so they can sell at a higher price tomorrow.  Sellers will be watching the ‘battle zone’, looking for ways to incorporate previous resistance levels into their trades, and they will be watching for a measured-move target as the day develops.  Buyers have no proof at this time, so they need to stay patient and wait for a successful breakout-pullback above the moving-average before they can start getting involved.

FDAX

FDAX is range-bound with a bearish bias this evening, which tells us to look for selling-opportunities at the highs of the range using the ‘2-Try Rule’ tomorrow.  Our plan for trading during a range is quite simple; buy the low, sell the high, avoid the middle and focus on failures until we see a successful breakout-pullback that is strong enough to confirm a new trade.