Friday’s Trading Plan | SchoolOfTrade Newsletter 10/13/16

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Notes for Tonight’s Newsletter:

We have some great trading opportunities setting-up for tomorrow; Crude Oil is bullish and trying to finish rotation back to the high of a spike & channel, E-mini S&P is bullish but fading off the highs of today’s range, Gold is range-bound with a slight bull-bias, and Euro is bullish and trading at the high of a spike & channel this evening.  We have some major news on the schedule for tonight and tomorrow, and a solid plan of attack no matter what Friday brings us.

Crude Oil is bullish and trying to finish rotation back to the high of a spike & channel this evening.  The bulls have control and are trying to hold above the ‘double-up’ for a move up to re-test yesterday’s high.  The most reliable way to trade a spike & channel is to look for traps and failures on a pullback to the correction-zone, or they will need to wait for a short-term range to develop at the highs and then wait to buy the lows.  Sellers have a big challenge right now because there are plenty of buying opportunities waiting as price pulls back, so they should be focused on getting and holding below the support trend-line coming off today’s lows for a move back to re-test the low at 49.36.

E-mini S&P is bullish but fading off the highs of today’s range which tells us that buyers aren’t interested yet in buying the breakout so we will look for a deep pullback to the battle zone for a re-test of the highs or a successful breakout-pullback above the range-highs tomorrow.  The sellers have a small window to scalp back to the battle zone but they need to beware trying to sell into the range lows until they see a successful breakout-pullback below 2115 for a move down to today’s low at 2107.75.

Gold is range-bound with a slight bull-bias this evening as it rotates back and forth inside an almost-flat channel.  Buyers and sellers are taking turns with control right now which means traders will need to be patient to buy the lows, sell the highs, and avoid the middle until we see a stronger trend develop tomorrow.  Buyers will be looking for sellers to fail below the lows with a target back to the highs, or they need to get a strong breakout-pullback above the measured-move to go hunting for the double-up target at 72.3.  Sellers will be looking for buyers to fail at the highs, keeping in mind that the bias is slightly bullish tomorrow so the target will only be back to the middle of the range, rather than all the way back to the lows.

Euro is bullish and trading at the high of a spike & channel this evening which tells the buyers to look for traps and failures down at support levels waiting below and to be careful trying to buy the break higher because there are multiple levels of resistance waiting overhead.  The ideal situation for the buyers would be a pullback to the correction-zone, which would give the buyers a lot more profit potential going up to yesterday’s high and the measured-move tomorrow.  At the same time, if the buyers complete the move up to the wedge they will then want to wait for a short-term range to develop and then buy the low of the range.  Sellers have to wait until they can take control tomorrow, which requires a strong move lower that can hold below the battle zone for a target back at today’s low and possibly the round number at 10,000 which they barely missed earlier today.