This Trend Line Scares Me on Tuesday

Welcome back to the party!  We’re heading into the final week of September, always a great week to be a trader…

Emini, Nasdaq, and Gold are all coiled-up with ranges ahead of major news tomorrow morning, which means we have an easy plan to execute on Tuesday…

The goal is simple;  the range acts like a magnet — so we buy low, sell high, and use failure patterns to trigger the best entries at key levels on the charts…

My only concern is – there’s a trend-line on each of these charts that should worry all of us.  But not to worry, I know how to use it our advantage…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Bears took price lower into a trading-range. 
• Ranges act like magnets, so the plan is to buy low, sell high and wait for a breakout.
• Sellers have all the momentum, and will be looking for shorts off range highs, along with breakouts below range lows.
• Buyers can buy support levels below the range, and look for a bullish reversal going higher.

Best Trades for Tomorrow: 

• UP – sell the buyer failure (or) buy the bull breakout
• DOWN – buy the seller failure (or) sell the bear breakout
• SIDEWAYS – sit on hands to avoid the middle.  Wait for a breakout.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bears had a strong move lower, but we appear to have developed into a range in the middle of the chart, which will act like a price-magnet.
• Sellers have the momentum, but they don’t have an easy job with this support trend-line in their way, giving buyers a great opportunity if they can grab control.
• Buyers will be looking for entries off support levels below the range, along with bull breakouts going higher.
• Sellers need to wait for a strong breakout lower, or they can try selling into buyer failures above the range with the 2-Try Rule.  Just beware that support trend-line!

Best Trades for Tomorrow: 

• UP – buy the bull breakout
• DOWN – buy the seller failure (or) sell the bear breakout
• SIDEWAYS – avoid the middle of the range, wait for a breakout.

Gold Futures (GC):

Gold Keys to Success:

• We’re still trading back and forth inside the range from last week, so our plan will be to continue buying low and selling with breakout failures.
• Buyers would love to buy support levels below the range, or buy a bull breakout going higher.
• Sellers have a challenge because they need to either (a) get a strong breakout lower, or they need to try selling above the range with a support trend-line in their way.  No easy!

Best Trades for Tomorrow: 

• UP – buy the bull breakout
• DOWN – Buy the seller failure (or) sell the bear breakout
• SIDEWAYS – sit on hands to avoid the range, stay patient for a breakout.