Crown Reversal – This 10x Pattern is All You Need!
It’s never too early to prep for Monday!
Markets are closed tomorrow, but that gives us the opportunity to prep for next Monday – especially this massive Crown Reversal setting up!
The Emini and Nasdaq are bearish, but we’re trading into major lows, so we’re looking for breakouts or reversals – can you guess which one I’m hoping for?
Crude Oil is bullish with a strong spike higher – situations like these tell us to be ready for (3) possible setups. One of them could make your entire week!
E-Mini S&P (ES):
Emini is bearish, trading at the lows of the weekly range.
Sellers have control of momentum right now, but selling into these major lows isn’t a good idea. Sellers need to wait for a breakout going lower, or sell a pullback at the ‘Battle Zone’ or major range highs overhead.
Buyers have plenty of options down here. They can buy a reversal off these lows, along with buying pullbacks on the way back to major range highs on Monday.
Keys to Success:
- Bearish trend, but sitting at major support
- Buyers want a reversal off the lows
- Sellers want a breakout lower
- Plenty of space for a bear breakout, we just need proof
E-Mini Nasdaq (NQ):
Sellers in control, but major support waiting below.
Bears have control of momentum right now, but sellers will need to wait for a pullback or breakout before they can confidently sell into these lows.
Buyers would love to see a double-bottom reversal off the lows, then buy pullbacks off new channels on the way higher.
Keys to Success:
- Strong bearish momentum, sitting at major support
- Buyers want a reversal off major lows
- Sellers want a breakout or a deep pullback off lows
- Breakout needs to be strong enough to break multiple support levels.
Crude Oil Futures (CL):
Strong bull spike suggests a range or deep pullback.
Bulls have control on Crude Oil with a strong spike higher, suggesting a retest of this high is likely at some point in the near future.
The size of this move is a big clue as well – suggesting we go sideways in a range, or get a deep pullback to attract more buyers into the move.
Buyers will be looking for ways to buy that next pullback, or buy the edges of a new trading-range.
Sellers have to stay patient, waiting for a double-top reversal off the highs, or a 123-Reversal going lower on strength.
Keys to Success:
- Strong bull spike says expect another leg up
- Buyers want to buy the dips ahead of a retest
- Sellers want a reversal off the highs
- Breakout needs to push through major resistance at 108.67.
