Triangle Day Trading Strategy | Crude Oil, Gold, E-mini & Euro Futures 03/07/16

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Notes for Tonight’s Newsletter:

Crude Oil is bullish this evening and with a pending measured-move still left un-tested we expect the bulls to try once more to send this price higher tomorrow.  We have a bull channel, three legs higher, and a few measured-moves to work with this evening.  The bull channel tells us to look for buying opportunities at the lows, and keep an eye out for the bears using the low as resistance ahead of a possible reversal lower.  Three legs higher tell us this market is considered ‘expensive’ and smart buyers will be looking for a 2-legged correction off the highs to buy this at a cheaper price.  The measured-moves will be targets for the buyers and they may need to be adjusted if we do get a correction back to support levels before they try to send it higher.

E-mini S&P is range-bound with a bull-bias this evening as the buyers try to re-test the highs in today’s session but there is key resistance and the round-number holding it back.  We have two bull channels, a wedge and a measured-move to work with this evening.  The short-term bull channel tells us buyers are trying to re-visit the high from earlier today, and the long-term bull channel tells us the buyers are trying to finish ‘rotation’ off the lows up to test the highs.  the wedge tells us there is resistance immediately overhead and the buyers will need to wait for a breakout pullback to buy above the wedge high before it collapses back to the wedge lows, and the big round number is acting like a magnet, keeping price stuck around the 2000.00.  Finally, the buyers have a measured-move for a target up at the previous high of day and the sellers may have their own measured-move back to the 1986.00 if the bulls give up on this overnight.

Gold is trading sideways ahead of the ECB Meeting this evening and the triangle on the chart tells us to buy low, sell high, and focus on failures until we find a direction tomorrow.  We have a triangle and a handful of measured-moves to work with this evening.  The triangle has a bull-bias and a recent failed attempt to breakout at the lows which tells us to expect the buyers to try to run this higher to big targets overhead.  The triangle also tells us to expect a breakout to pull-back to the triangle before we see an attempt to find a direction tomorrow so we need to stay patient.  The Measured moves are on both sides and will provide us with areas of interest for failures going back into the triangle.