Tuesday’s Trade Plan | SchoolOfTrade Newsletter 10/24/16

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Notes for Tonight’s Newsletter:

Crude Oil is bullish and trying to make a run back to last Friday’s high, E-mini S&P is bullish and struggling to push through last week’s high, Gold is bearish and rotating back to the high of the channel, and the Euro is bearish but an overshoot tells us to wait for the correction.

Crude Oil is bullish and trying to make a run back to last Friday’s high but there are some areas of resistance here that tell the buyers they need to hold the next pullback or this price may collapse back to the round number tomorrow.  The bulls have control with a strong move off the lows, but if you look closely you can see the overshoot of the wedge low is now correcting with a symmetrical overshoot of the wedge high, and price is testing the ‘correction zone’ off the bear spike & wedge.  The move is quite strong for the bulls, but they need to hold this next pullback if they want to get the respect from the sellers who we assume will be eagerly waiting for an opportunity to sell back down to the $50 area again tomorrow morning.

E-mini S&P is bullish and trading at last week’s high, which appears to be giving the bulls some trouble this evening.  The bulls have control and after a ‘bear trap’ below the low of the range we should be seeing aggressive buying back up to re-test the highs and that’s not happening which means the buyers may give the sellers a chance to take this lower tomorrow.  The buyers are already in this move coming off the lows, and the next opportunity will be a breakout-pullback above the range highs for a measured-move target at 54.75.  Sellers, on the other hand, may get the opportunity they need, but they need to see a pullback below the support trend-line and hold a pullback to send this price back down to the low of day.

Gold is bearish but coming off the low of a channel, which tells us that buyers have a short-term window before the sellers look to reload and re-test the lows again tomorrow.  The bears have control after a strong push off the highs, but it’s easy to see the bears weren’t interested in selling into the channel low so they will wait for price to push higher for a move reliable opportunity.  Buyers would love to grab a scalp on a pullback to the support trend-line but they need to watch out for the battle zone on the way back to the highs.  Sellers, on the other hand, will be looking to fill the gap and test the battle zone before getting back below the support trend line for a move back down again.

Euro is bearish with an overshoot at the low of the channel which tells the sellers to be looking for a bullish correction ahead of the most reliable selling opportunities to reach the measured-move tomorrow.  Sellers have control after the buyers appear to have failed completing the wedge target and will be looking for opportunities to sell high up at areas of resistance.  Buyers, on the other hands, need to hold above the channel highs and then show some strength pushing through resistance for a reliable move going back up to the highs and possibly the wedge target they missed earlier in the session.