July 24, 2012
- in Uncategorized by schooloftrade
E-Mini-Russell trading at the lows of the bull price channel
10:00 EST
E-Mini-Russell trading at the lows of the bull pricechannel just below the trigger-zone support and about to test the PLOD. We know the E-Mini-Russell loves the PHOD and
PLOD, so if we make new lower-lows we sell with wave-pattern short, and if the sellers
fail and move back above the PLOD we will buy above the PLOD. Remember, if we see the sellers fail, this is
a BIG BUYING Opportunity! If the sellers
are in control, we get short below 770.9 and our profit target is at the price
channel lows at 753.2, taking targets on the way down at 760.1.
If we break below the 770.9 this willconfirm the FAILED bearish AB=CD Pattern.
We cannot assume price will move quickly down to the 760.1 which is the
next level of support. We zoom in closer
on the 55-range chart of E-Mini-Russell and we see right away the double-top overhead
has produced multiple support levels directly below the current price. If we go lower below the PLOD we need to
beware the fake-out breakout if the sellers fail on top of this support at
770.7.
