In yesterday’s trade strategy, trade scenario #2 played out nicely…Here’s an excerpt: “Failure to convert 1851 forces further consolidation action within yesterday’s range parameters. Violation and conversion of prior day low (PDL) calls for reassessment of bullish scenario, targeting 1829 – 31 zone, then, 1824 -27 zone.”
There was significant overhead resistance at the Stat-X Zone, which offered the Bears a nice reversal point from which to initiate shorts. By session settlement, price had pushed down approximately 15 handles to the lower Stat-X Zone, which contained further damage.
Overnight prices have pushed down a bit further very near to our projected support zone near 1831 level, which forms a very nice symmetrical two-wave pullback. Currently, price is now below the 3-Day Central Pivot Zone (3D CPZ), so bulls need to squelch any additional selling and hold globex lows.
Failure to hold globex lows projects 1824 – 27 zone and further to Stat-X Extreme 1821! Resistance now becomes 1844- 46 zone and is a major hurdle for the bulls to overcome.
Trade Strategy for today is to be sellers on bounces that fail to carry, looking for the bear camp to force some long liquidation. We will always be respectful of the Bulls tenacity and strength as the bigger picture remains very much bullish.
Remain Disciplined and ALWAYS USE STOPS!
I am ready to trade. My patterns are verified. My homework is complete. My mind is clear. I have rehearsed everything. I am prepared strategically, emotionally, and financially each and every day