3 Trend Channels for Wednesday | Crude Oil, Gold, E-mini & Euro Futures 04/05/16

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Notes for Tonight’s Newsletter:

Markets are all setting with excellent opportunities for tomorrow; they all have their own plan and we’re looking forward to another awesome session in our trade room tomorrow.

Crude Oil is bullish after this evening’s API-Report, but we’re now trading at the highs of the major bear-channel and into a measured-move which means sellers will be looking for opportunities off the highs.  We have a major bear-channel, bear-flag, inventory news, and a measured-move on the chart tonight.  The major bear-channel tells us to sell the highs using failures into strength, then into pullbacks as sellers target back to channel lows.  The bear-flag broke higher instead of breaking lower which tells us to expect 2 legs up, and that was conveniently accomplished by this evening’s API report @ 4:30pm EST which gives us support at 36.03 tomorrow.  The measured-move is resistance, but considering that it was achieved on news we will be wise to wait for another attempt to push higher before selling back down.

E-mini S&P is bearish with a spike & channel this evening and a recent ‘to the tick’ test of the measured-move tells us this market is likely to re-visit those lows sooner than later before correcting higher tomorrow.  We have a gap-down, spike & channel, and measured-move on the chart this evening.  The gap-down is relatively rare in 23-hour electronic trading session which means there is ‘unfinished business’ to be completed up there at some point in the future, we just don’t know WHEN.  The spike & channel is bearish which tells us to sell the channel highs and sell the correction zone up around 2048.  The measured-move might be the biggest clue on the chart tonight because it was tested literally ‘to the tick’ at 2034.25 which is rare and puts a bullseye back at the lows in the short-term.

Gold is setting-up to be quite bullish this evening after a successful ‘first channel test’ was followed by a strong bullish candle which puts a target back at range-highs and a long-term move back to channel highs.  We have a major bull-channel, trading-range and measured-move on the chart this evening.  The major bull-channel just has a ‘first test’ of the lows and the follow-up candle closed strong for the bulls which will have the sellers exiting their positions quickly if the next candle closes above the range.  The range also had a ‘trap low’ which is a strong clue that this price wants to push higher and the buyers will be targeting the range-high at 38.8, channel-high, and measured-move tomorrow.

Euro is range-bound this evening which means our plan is to sell high and buy low using failures and the ‘2-try rule’ tomorrow.  The most recent breakout of the range was at the lows which tells us to expect an attempt to break the highs.  We will be looking for the ‘2 try rule’ to sell a failed breakout at the highs and then look for rotation back to range lows where we will repeat until we see a successful breakout to either of the range-expansion levels above and below.