Trade Strategy 04.21.15

Bullish action continues to expand price higher to yet again test upper edge of multi-week trading range. There are signs favoring an upside resolution, but has yet to occur. As such until price clears and converts 2110 handle, we will continue to treat action as range bound consolidation.

Having closed strong in yesterday’s range, price has pushed higher on overnight trade to reach Cycle Target of 2105.00. Price will need to exceed this level for further upside range expansion.

Today is Cycle Day 2 (CD2); Odds of Rally > 10 = 83%; Odds of Rally > 20 = 44%; Average Range = 14.50; Max Average Range = 22.50; Possible High = 2106 based upon average penetration of CD1 high; Possible Low = 2090.75 based upon average range on CD2.

***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.

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Today’s Hypotheses: June (M) Contract

Scenario 1: IF Price can hold above PH (2097.50), THEN there is a 57% chance of reaching 2106.00 TargetMaster Range Breakout Target. Above this level expands range to 2110. Price strength above this level target 2112.50 – 2115.00.

Scenario 2: Price has reached Cycle Target of 2105.00 in pre-cash session trade. IF price fails to hold above PH (2097.50), THEN expectation will be for pullback into prior days range to absorb recent buying. First significant level for support is located between 2088 – 2090 zone. Violation of this zone calls for deeper downside probe to find responsive buyers which targets 2080 – 2083.50 zone.

Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.

Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!

Good Trading…David

“Knowing is not enough, We must APPLY. Willing is not enough, We must DO. – Bruce Lee


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