5 Trades for Wednesday | Crude Oil, Gold, E-mini & Euro Futures 02/23/16

“Setting goals is the first step in turning the invisible into the visible.”

Notes for Tonight’s Newsletter:

Crude Oil is bearish this evening as it rotates inside multiple bear-channels on the way to completing a measured-move.  Today’s session ended right at the lows which is too cheap to sell here so we will be looking for a bullish correction before selling more tomorrow.  News headlines got today’s move going lower when Iran called the Saudi/Russia production freeze a ‘joke’ which was then followed by comments from the Saudis who said they ‘welcomed more supply’ send price straight back to yesterday’s lows.  Sellers are looking for a correction higher back to the news candle around 31.82 – 32.00, and the buyers need to wait for a new higher-high and a pullback to hold before they consider buying this market.

E-mini S&P is following crude oil’s lead right now with its own collapse off the highs today which ended in a bearish spike & channel and just a few ticks away from completing a measured-move which tells us sellers will be taking profit soon and will look for a correction higher before selling more.  The sellers completed the rotation back to the lows of the spike & channel and the measured-move is still waiting to be tested so we will look for an overshoot of this low to ‘finish the job’ to 1912.00 and then expect a correction higher.  Sellers want to wait to sell up at resistance levels overhead and buyers will be looking for a double-overshoot at the lows (or) a new higher-high and hold a pullback to buy back up to resistance levels overhead.

Gold is bullish and rotating to the highs of a spike & channel on the way to completing the measured-move target overhead.  Buyers would love to see a ‘trap low’ before completing the measured-move because price is too expensive at the highs right now.  Price has already come off the lows of the channel and the big red candle at today’s high tells us we better wait for a ‘trap low’ if we want to buy any more at this time.  If price pushes higher, we will complete the measured-move and then sellers will look for buyers to fail so they can sell off the highs.  If we correct lower before we reach the measured-move the buyers will be looking for the sellers to fail so they can buy it ‘cheap’ on the way back to the highs.

Euro is bearish and range-bound this evening and the ‘2 try rule’ tells us to be looking for buyer-failures at resistance for the next selling opportunity tomorrow.  This sloppy chart has a bear-channel, trading range and a few measured-moves to work with tomorrow.  The trading range is most important and we can see the buyers recently tried twice to reach 0502 overhead and failed so we will expect the sellers to push price back to targets below at the 10000 round number and measured-move target at 9799.