4 Channels Wednesday | Crude Oil, Gold, E-mini & Euro Futures 07/12/16

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“Believe in yourself! Have faith in
your abilities! Without a humble but reasonable confidence in your own powers
you cannot be successful or happy.”

Notes for Tonight’s Newsletter:

Markets
are moving really well this second week of July with the London, US, and Asian
sessions all filled with reliable
opportunities; Crude Oil and the S&P are bullish while Gold and Euro
are bearish going into Wednesday’s session.

Crude
Oil is bullish and trading at the low of a wedge
this evening with a target up at the measured-move; The bulls had
control for the entire session today with two legs up and a bull wedge which
may end up widening-out to a bull spike & channel.  The wedge tells the bulls to look traps at
prior swings and gives us a target at the 46.93 high as well as 47.89 which
also lines up with the double-up target at 47.97.  The bulls haven’t completed their
measured-move yet so we assume that will be the main objective before we see a 2-legged-correction
and another opportunity for the bulls to complete the move to 47.89.  The sellers don’t have many options at this
point, the only reliable selling opportunity will be after a successful
breakout pullback can hold below the battle zone at 46.02 and even then they
may have trouble because we can assume that a lot of buyers will still be
interested in this market as far back as 45.46 tomorrow ahead of inventories @
10:30am EST.

E-mini
S&P is bullish and trading at the low of a spike
& channel this evening with a target up at the measured-move; The bulls had
control for the entire session today with two strong legs higher that could
easily be defined as a wedge or spike & channel with a pending
measured-move target still left unreached. 
The bulls completed the double-up target at 48.00 and now they have
another shot going back to re-test the highs after a 2-legged correction to the
low of the spike & channel.  Buyers
will be looking for opportunities using pullbacks and seller-failures on the
way back to the highs and then up to the measured-move and wedge target
overhead and we can assume that a deep pullback will also be a buying
opportunity as far down as 38.25 tomorrow. 
Sellers have two windows of opportunity tomorrow below the battle zones
at 42.50 and 36.50 with a target back to the low of day.

Gold
is bearish and trading at the ‘triple-down’
target in a somewhat oversold position this evening; Gold started the
session trading sideways inside a range but then tumbled lower with 5 legs
down, overshooting the low of a bear channel and completing a triple-down
target which was the wedge target from yesterday’s newsletter.  We can’t say this market won’t go lower from
here, but it sure had a big day today and the most recent double-overshoot of
the channel low tells the sellers that the most reliable opportunities tomorrow
will be after a decent correction back to prior levels of resistance which will
give the short-term buyers a window of opportunity if they can get a new
higher-high and then hold a pullback. 
Sellers will be looking for buyer-failures at resistance levels overhead
or they need a strong move lower that holds the pullback.  Buyers need to see a higher-high and hold
above the channel high or they need to see the sellers try twice to take it
lower and try buying into the seller-failure at new lows which is much lower
reliability tomorrow.

Euro
is bearish and trading at the low of a channel
after completing the measured-move target this evening; The bulls started
the session in London with a strong push higher but they couldn’t hold the
pullback and sellers easily took control shortly before the US-Session began
and finally completed the measured-move just before the closing bell this
afternoon.  The bears got their
measured-move target which tells us to look for a 2-legged-correction back to
prior resistance levels overhead for the next leg down with a target back to
the lows and potential all the way down to the double-down and last Friday’s ‘non-farm
payroll’ lows.  The buyers need to stay
patient until they can get some traction with a higher-high and try to hold the
pullback above the channel highs with a target back up to overhead swings and
potentially back to the high from today.