February 4, 2016
- in Uncategorized by schooloftrade
Avoid these Traps | Crude Oil, Gold, E-mini & Euro Futures 02/03/16
“The meeting of preparation and opportunity generates the
offspring we call luck.”
offspring we call luck.”
Notes for Tonight’s Newsletter:
Crude
Oil is bullish but after a huge move higher on today’s news we see the
market as very expensive at the highs of the channel
and a completed measured-move
which tells us to wait for a bearish correction for a cheaper price to buy. Today’s inventory
report sent prices higher this morning with a bull wedge
that broke, re-tested and finished with a micro spike
& channel which shows extreme strength for the buyers, but if you zoom
out and look left you can see this is a very interesting area that has been
tested before, which tells us there was a purpose to the move today and buyers
will want to wait for a deep correction before buying more. Sellers are looking for buyers to fail at the
highs and then they need to hold a pullback
to take control back to the support levels below.
Oil is bullish but after a huge move higher on today’s news we see the
market as very expensive at the highs of the channel
and a completed measured-move
which tells us to wait for a bearish correction for a cheaper price to buy. Today’s inventory
report sent prices higher this morning with a bull wedge
that broke, re-tested and finished with a micro spike
& channel which shows extreme strength for the buyers, but if you zoom
out and look left you can see this is a very interesting area that has been
tested before, which tells us there was a purpose to the move today and buyers
will want to wait for a deep correction before buying more. Sellers are looking for buyers to fail at the
highs and then they need to hold a pullback
to take control back to the support levels below.
E-mini
S&P is bullish with a spike
& channel but we are at the highs of today’s range which tells us the
buyers may struggle to push this price much higher. Today is one big trading
range and we are right at the highs which tells us buyers will be taking
profit and sellers will be entering ‘short’ here. We also see the recent spike
& channel for the bulls has already corrected lower telling us to
expect two measured
legs higher in the short-term.
Buyers want to see a breakout
pullback that holds above the range highs.
Sellers want to see the highs hold as resistance and the buyers fail on
the next pullback
to sell these highs.
S&P is bullish with a spike
& channel but we are at the highs of today’s range which tells us the
buyers may struggle to push this price much higher. Today is one big trading
range and we are right at the highs which tells us buyers will be taking
profit and sellers will be entering ‘short’ here. We also see the recent spike
& channel for the bulls has already corrected lower telling us to
expect two measured
legs higher in the short-term.
Buyers want to see a breakout
pullback that holds above the range highs.
Sellers want to see the highs hold as resistance and the buyers fail on
the next pullback
to sell these highs.
Gold
is bullish with a spike
& channel that appears to be ending in a range this evening which tells
us to expect the buyers to try 2 legs
higher tomorrow, but if they fail we will wait for a correction back to
range lows for the next opportunity. The
bulls had clear control of this market today and they finished with a spike
& channel that has an overshoot,
undershoot,
and an attempt to push higher which appears to form a range. The overshoot appears to have been ‘exhaustive’
for the buyers which tells us to be patient for a correction back to
range-lows, but if the bulls show strength we can expect 2 more legs higher
before this market calls it quits.
is bullish with a spike
& channel that appears to be ending in a range this evening which tells
us to expect the buyers to try 2 legs
higher tomorrow, but if they fail we will wait for a correction back to
range lows for the next opportunity. The
bulls had clear control of this market today and they finished with a spike
& channel that has an overshoot,
undershoot,
and an attempt to push higher which appears to form a range. The overshoot appears to have been ‘exhaustive’
for the buyers which tells us to be patient for a correction back to
range-lows, but if the bulls show strength we can expect 2 more legs higher
before this market calls it quits.
Euro
is bullish with the potential to make one more leg higher, but with 3 pushes into
an undershoot
of the channel we expect buyers to take profit and wait for a correction
to a cheaper price before they buy more this week. The Euro made a big push higher today, and it
still has another leg to make, but with so much profit on the table for the
buyers we will expect them to take some profit here. We also see that the Euro has closed above
the 200ema
on the daily chart which means tomorrow is going to be ‘PROVE IT’ time for
these buyers, and looking at today’s chart we can see PLENTY of opportunity for
the bears to send this back to the lows from today if this correction turns
into a reversal.
is bullish with the potential to make one more leg higher, but with 3 pushes into
an undershoot
of the channel we expect buyers to take profit and wait for a correction
to a cheaper price before they buy more this week. The Euro made a big push higher today, and it
still has another leg to make, but with so much profit on the table for the
buyers we will expect them to take some profit here. We also see that the Euro has closed above
the 200ema
on the daily chart which means tomorrow is going to be ‘PROVE IT’ time for
these buyers, and looking at today’s chart we can see PLENTY of opportunity for
the bears to send this back to the lows from today if this correction turns
into a reversal.
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