This DT Reversal Could Be an EASY 15x Tomorrow
Back to work – one day left!
We’re bullish going into Thursday, so I’m looking for pullbacks and breakouts – but this “hidden” double-top reversal is the trade I really want!
Emini and Nasdaq are bullish, but look closely – we’re trading into major resistance with ranges (magnets) below. I’ll be happy with a breakout, but I’m praying we get this reversal!
Crude Oil is bullish too – I’d love to see another range overnight so I can scalp both sides of this market. If not, keep this bull breakout on your radar…
Don’t forget – markets closed on Friday, let’s finish the week strong!
E-Mini S&P (ES):
Emini is bullish and trading near the high of yesterday’s range.
Buyers have control of momentum, but considering today was completely “inside” yesterday’s trading-range, it’s hard to justify buying up near these highs until we see proof of a breakout.
Knowing this, sellers will be looking for failures and reversals to sell off these highs going back to the range where the day began.
Keys to Success:
- “Inside Day” with a range in the middle of the chart
- Buyers need a breakout, or wait to buy off major lows
- Sellers want to short these highs going back into the range
- Wide Open Space for a Breakout above!
E-Mini Nasdaq (NQ):
Nasdaq is bullish, trading at the high of Tuesday’s range.
Buyers have control, but this is a horrible place to start buying. We have major resistance above us, and a range acting as a price-magnet below.
Buyers need to stay patient for a strong breakout through these highs.
Sellers will be looking for a reversal off the highs, along with selling pullbacks on the way back to major lows.
Keys to Success:
- Range in the middle, inside yesterday’s range
- Buyers need a strong breakout, or wait to buy off major lows
- Sellers want failures and reversals off the high
- Breakout is difficult because we have so much above us.
Crude Oil Futures (CL):
Crude Oil is bullish with resistance above, and ranges below.
Crude Oil is similar to the Eminis right now, in the way that we’re bullish but trading into prior major highs with (multiple) range magnets below.
Buyers need to wait for a breakout above this $105 area, while sellers will be looking for shorts into major resistance overhead, along with reversals going lower.
Keep in mind – rollover is coming soon, so keep your eyes on the 06-22 contract and make the switch when volume “rolls forward”.
Keys to Success:
- Bullish into major resistance with ranges below
- Buyers want to get a breakout so they can buy the first pullback
- Sellers want to short the 105 resistance and trade reversals
- Look for a breakout above $105 up to $108
- Keep an eye on Contract Rollover tomorrow/next Monday
