Wednesday’s Trade Plan | SchoolOfTrade Newsletter 11/08/16

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Notes for Tonight’s Newsletter:

Crude Oil is range-bound and trying to finish rotation back to the low of the range, E-mini S&P is bullish and trading sideways in the middle of a range, Gold is bearish and trading with a spike & range, and the Euro is bearish and trading at the lows of a channel after reaching its measured-move this evening.

Its election day and we’re only hours away from seeing some of the first official results with the exit polls being only minutes away.  No matter what happens tonight, we know our strategy for both the bulls and the bears, and we’re excited for the many opportunities coming our way overnight and into tomorrow’s session.

Crude Oil is range-bound and trying to finish rotation back to the low of the range after the buyers tried twice to breakout to new highs and failed.  Sellers have a strong move lower so we can expect the bears to be looking for selling opportunities at the moving-average and the high of the range with a target back to the lows and possibly the pendulum-swing target down at 44.  Once we get back to the lows of the range, the buyers will then start looking for the sellers to try twice and if/when they fail the bulls will look for opportunities to buy it going back to the high of the range on the opposite side.

E-mini S&P is bullish and trading sideways in the middle of a range this evening with the bears trying to finish rotation back to the low of the range where we assume there will be more buyers eagerly waiting to buy it back up again.  The bulls continued their run higher today until they got their ‘double-up’ target and then started trading sideways.  The buyers will be looking for opportunities using failures at the low of the range as well as a breakout-pullback above the high of the range if they can push through the highs successfully.  Sellers need to see strength through the ‘battle zone’ for a move back to test the low, or they will need to wait for price to fail twice at the highs and sell off the highs.

Gold is bearish and trading with a spike & range this evening which tells the bears to be looking for opportunities to sell above the range-high with targets going back to the range-low unless the buyers can muster up enough strength to push through the battle zone and hold a pullback for a test of today’s high.  Sellers would love to sell the reversal-lines and battle zone above the range and should avoid selling below the range unless they can get a strong enough breakout to get the moving-average below the range-low.  Buyers need can look for opportunities above the 80.3 reversal-line and again above the battle zone or they can look at seller-failures below the range as well.

Euro is bearish and trading at the lows of a channel after reaching its measured-move this evening.  The bears have control and will be looking for selling opportunities up at the reversal-line, channel-high and battle-zone or they will need to get a strong break down below the channel low and hold a pullback for a test of the 10,000 round number.  Buyers will be wise to look for opportunities above the battle zone, or they need to look for another channel overshoot and trying picking a bottom which will never be very reliable.  Buyers will be hunting for a re-test of the high, but they will need hold a pullback above the channel high first if they want anything reliable tomorrow.