As we noted last week; “price extremes on both edges, ranging from 1854.50 – 1884.75, with daily swings averaging 20 handles.” Looking at the 10-day profile, all those intra-day gyrations have formed a very large, potentially powerful “Balance Zone” between 1864 – 1879, with Point of Control 1872. Although markets are currently in a “holding-pattern”, this sets the stage for the next powerful directional move…The 1880 handle remains key marker to penetrate and convert for upside resolution. Violation of 1864 and conversion would favor a downside resolution.
Overnight trade has price trading higher on approximately 110K contracts. IF price can maintain a bid above Prior Day High (PDH) 1875.00, THEN upside targets 1881.50, with layered levels scaling, 1885.50 – 1888.00 – 1891.00 – 93. Failure to convert PDH, calls for retracement back to prior value HVN 1868.00. Below this levels and deeper pullback suggests retest of PDL 1862.50.
We will continue to favor the bullish case until the key structural pivot supports are violated 1868 – 1862 handles. We will update dynamic intra-day levels in the Trading Room.
Remain Disciplined….ALWAYS USE STOPS!
I am detached from the results. I think in terms of the process and the validity of the process. I understand that I am more than the trading. I do not tie a fragile ego to any day’s trading results. I have faith that over time I will make money. The results of any one trade are statistically unimportant. I think in term of probability. A single trade says nothing about me as a person.