Best Trades for Tuesday | SchoolOfTrade Newsletter 01/23/17

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“If you don’t design your own life plan, chances are you’ll fall into someone else’s plan. And guess what they have planned for you? Not much.”

Crude Oil is bullish and trying to re-test the high of a bull channel this evening, but the measured-move resistance is standing in the way, so we’re looking for traps at previous support levels.

E-Mini S&P is bullish and trying complete the measured-move this evening but the recent price-action suggests the buyers may not be too eager to buy this high, so we’re looking for a pullback into the ‘battle zone’.

Gold is bullish and trying to re-test the high of a bull spike & channel this evening, but a pending trading-range may stop the bulls in their tracks tomorrow.

Euro is bullish and trading at the high of a short-term bull channel and measured-move this evening, which tells us to wait for rotation back to the low of the channel. 

FDAX is range-bound and bullish as the buyers try to run back into the range and push through to the ‘pendulum swing on the other side tomorrow.

Crude Oil

Crude Oil is bullish and trying to re-test the high of a bull channel this evening, but the measured-move resistance is standing in the way, which tells the buyers to look for ‘traps’ below the reversal-line at .62 to allow them to ‘buy low’ tomorrow.  One thing to keep in mind is that falling resistance trend-line, which may keep the buyers from getting too aggressive, and it may give the sellers a shot at a reversal.  Sellers will be looking for a successful breakout-pullback below the 52.62 reversal-line for a move down to Friday’s low.

E-Mini S&P

E-Mini S&P is bullish and trying complete the measured-move this evening but the recent price-action suggests the buyers may not be too eager to buy this high, so our plan for tomorrow will be looking for a pullback into the ‘battle zone’ to allow us to ‘buy low’, or we need to see continued strength higher so we can buy pullbacks.  If price runs higher, the measured-move is at 66, so we want to avoid chasing the move higher and focus on ‘traps’ if we don’t get the pullback.  Sellers on the other hand, need to be careful trying to call a reversal until we see a successful breakout-pullback below the ‘battle zone’ for a move back down to re-test today’s low.

Gold

Gold is bullish and trying to re-test the high of a bull spike & channel this evening after price pulled-back to allow buyers to ‘buy low’.  Buyers are expected to re-test the high, but we can assume that sellers will be waiting to sell the high of a pending range, so we will be looking for more clues from there.  Buyers will need to see a STRONG successful breakout-pullback through the highs if they want the confidence to buy the next pullback to the measured-move target up at 24.4.  Sellers on the other hand will be looking for the move higher to fail, and will look for failure set-ups to capitalize on the ‘2-Try Rule’ to sell the high of the range.

Euro

Euro is bullish and trading at the high of a short-term bull channel as well as the measured-move target this evening, which tells the bulls to be looking for buying opportunities back down at the low of the channel and ‘battle zone’ tomorrow.  The buyers have control, but they won’t be interested in buying ‘high’ unless this trend is extremely strong, so the plan is to look for a successful breakout-pullback to new highs, or wait for ‘traps’ and ‘failures’ at the ‘battle zone’.  Sellers have to stay patient, they won’t be able to get anything reliable until we see a strong move lower that can hold a pullback below the ‘battle zone’ for a move to fill the gap that is still open from last Friday’s closing price.

FDAX

FDAX is range-bound and bullish as the buyers try to rotate back into the range and push through to the ‘pendulum swing’ on the other side.  The FDAX had a wild ride today; the day started with a gap down, sellers had control, but then lost it, only to find the buyers rejecting the higher prices, and now the buyers have been given a great opportunity to buy this recent dip for a target going back to the range and most likely to fill the gap left open from last Friday.  The buyers have control, with a support trend-line to protect against the sellers, and now they want to ‘buy low’ using ‘traps’ and ‘failures’ on the way back to the range.