This “Trap” Could Be Biggest Trade of the Week!
Last week of April, let’s get after it!
Markets finally bounced higher after last week’s big meltdown, and it sure looks like a great time to start buying, right? Not so fast!
Yea, we’re pretty bullish right now, but it smells like a bull trap that could make your entire week!
Emini and Nasdaq are both bouncing hard off today’s lows – buyers definitely have control of momentum, but do you really trust this enough to start buying?
Crude Oil bounced higher today too, but look closely at today’s chart and you’ll see we’re trading right into one of my favorite zones… Don’t miss this one!
Last week of the month is usually one of the best times to trade – you’ll regret missing these for sure!
E-Mini S&P (ES):
Emini is bullish with a Slingshot Reversal off today’s low.
Bulls have control with a strong run higher on the Emini. Strong moves like these usually give us another leg in the same direction, but with last week’s big move lower, this could be nothing more than a big bounce in a bear market.
Knowing this, buyers will be looking for entries on pullbacks, and just below a trading-range if we get one tomorrow.
Sellers have to be careful because of this strong momentum, but they can short a double-top reversal, a crown reversal, or wait for a 123-Reversal and short the first pullback going back into the range below us.
Keys to Success:
- Strong breakout higher, but can they hold it?
- Buyers need to “trap in” the bears
- Sellers want buyers to fail on the next pullback
- Stay patient if price goes higher, watch for a new range
E-Mini Nasdaq (NQ):
Nasdaq is bullish after sellers failed their Pendulum-Swing!
Bulls have control of momentum, but with last week’s big move lower, this may be nothing more than a selling opportunity for the bears looking for a retest of today’s low.
Buyers will be looking to “trap” sellers getting short on the next pullback, or they can look for a range and buy seller failures at support levels below it.
Sellers need to stay patient, but they can look for a crown reversal, a double-top reversal, or just wait for a pop and grind lower and sell the first test of the new bear channel.
Keys to Success:
- Big move down last week, can buyers hold this bounce?
- Buyers want to “trap” sellers on the next pullback
- Sellers want a reversal back to the lows
- Don’t chase the move higher, execute the same plan.
Crude Oil Futures (CL):
Crude Oil pulls back into the Spike and Channel zone!
Bulls have control of momentum, but it’s easy to see we’ve pulled back into the “base” of today’s spike and channel. Combine this with last week’s bearish trend and we have the potential for a collapse back to the lows.
Buyers have a strong spike higher, but they’ll need to trap in sellers on the next pullback to get in long right here. Better to wait for another push higher and then buy pullbacks back to the range around $103.
Sellers will look for a double-top reversal, or 123-Reversal going back to the lows.
Keys to Success:
- Spike and channel pulling back into the sell zone
- Buyers want to move higher, or trap in sellers on next pullback
- Sellers want buyers to struggle here so they can sell into their stops.
- If price moves higher, get aggressive going back to last week’s close.
