Day Trading Plan for Tuesday | SchoolOfTrade Newsletter 11/28/16

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Crude Oil is bullish and trading at the low of a range this evening after the bulls successfully reached their triple measured-move.

E-Mini S&P is bearish but trading at the low of today’s range.

Gold is bullish and trying to re-test the highs after the market rejected higher prices earlier in the session.

Euro is bearish and trying to attract more sellers with higher prices, and the FDAX is bearish and trying to finish off the measured-move target this evening.

Crude Oil is bullish and trading at the low of a range this evening after the bulls successfully reached their triple measured-move earlier in today’s session.  The bulls have control, and after reaching their objective earlier today, this pullback off the high tells me that buyers are waiting for trading opportunities at a lower price tomorrow.  The bulls will be looking for buying opportunities at support levels waiting below, such as the un-tested reversal-line at 46.30 for the move back to re-test the highs.  The sellers on the other hand, need to wait for the buyers to give up and see a strong move to new lows and hold a pullback for a move back to re-test the lows tomorrow.

E-Mini S&P is bearish but trading at the low of today’s range, which tells us to look for the sellers to fail at the lows so we can buy the lows for rotation back to the high of the range tomorrow.  The buyers will be watching for the ‘2 try rule’ to buy the lows, which means the bulls will be looking for this next attempt to fail.  Sellers on the other hand, even with such a strong move off the highs, are trading at the measured-move and selling into this support will be low reliability, so their best option is to sell the high of the channel and/or range or look for a strong breakout-pullback below the low of the channel.

Gold is bullish and trying to re-test the highs after the market rejected higher prices earlier in the session and pulled-back to allow the buyers to ‘buy low’.  The bulls will be looking for opportunities on the way up to the measured-move, but then they need to wait and see where the market wants to go from there.  We can expect three scenarios once we get back to the highs.  First, we may push through the highs and go hunting for a triple measured-move.  Second, we may see profit-taking at the highs and a short-term trading-range, for which we will buy the lows.  Third, the buyers may reject the highs again and we may see a move back to the lows of the range again.

Euro is bearish and trying to attract more sellers with higher prices this evening.  The bears have control, and with such a sharp move lower, we can assume that this correction off the lows will be seen as a selling-opportunity for the bears, with a target going back to re-test the lows.  Sellers will be looking for buyer-failures on the pullbacks to sell back to the lows, while the buyers will need to not only hold this pullback, but follow it up with some strength pushing up to new highs to get the sellers off their backs and take control of this market for a move back to re-test today’s high.

FDAX is bearish and trying to finish off the measured-move target this evening, and at this point we can assume that sellers are either already in this move, or they will be waiting for opportunities to ‘sell high’ up at resistance levels waiting overhead.  In a bear market, sellers will keep selling until they reach their objective, which is most often a measured-move or channel rotation.  At this point, we’re so close to reaching that measured-move, our best option for selling-opportunities will be up at the resistance levels overhead.  Buyers on the other hand need to stay patient and wait for this market to turn bullish, which requires a strong move higher that holds the pullback for a target going back to fill the weekend gap.