Another attempt to break through key support at 1938 failed in yesterday’s session, further affirming the Fed Day Breakout to higher ground. Almost a carbon copy of prior session where prices opened with an “Open Drive” sell down to key support (1938), only to be rejected, as buyers came in heavily snapping up contracts. This now reaffirms support and creates an important “Line in the Sand” over/under at the 1938 level.
We will restate the key zones highlighted in previous posts as they remain valid: “More important resistance can now be marked between 1950 – 1955 zone and support between 1938 – 1944 zone. These zones will be critical barometers for future direction…Penetration or Violation of these zones will determine the Bulls or Bears resolve.”
Scenario 1: Overhead supply/resistance is 1950 – 55 zone…IF bulls can push price above PDH (1952.50) and convert, THEN upper targets 1954 – 55, followed by 1958 – 60 zone.
Scenario 2: Failure to convert PDH (1952.50), suggest overhead resistance is sufficient in quantity to satisfy the bulls appetite. Pullback support where expectation of buy response would be initially 1943 – 45 zone, followed by 1938 – 40 zone.
Trade Strategy: Multi-Day trading range is now well established between 1938 – 1955 boundaries. Our tactical trade strategy is now seeking opportunities to establish long or short positions at these boundaries…Within this zone, we’ll simply be on search for Stacker, Premium and Discount Setups.
Focus on the Trading Process…Not the Outcome ALWAYS USE STOPS!
I am courageous and I always act, even in the face of uncertainty and possible loss. Do not say, no fear. Feel the fear and act anyway. I may be frightened, but I still saddle up. I am not reckless. I act promptly in accordance with my methodology. I respect my calculations. I have a healthy respect and I balance that respect with my courage. I am an explorer. I am on a hero’s journey.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS