We stated in yesterday’s DTS Report 05.05.15: “…cycle targets have been achieved and exceeded, so the decline can begin at any time…Violation of 2105 – 2103 would increase odds of deeper downside…”
The decline did unfold as anticipated pushing price lower to just above Cycle Low (2080.50) Looking at bigger picture, price remains in a wide range consolidation formation between 2078.00 – 2115.00 handles. Until either of those levels are converted, range action is the continued trade, with no real damage done to either bulls or bears.
Today is Cycle Day 1 (CD1)…The decline parameters have been satisfied on CD3, so expectation will be for some price stabilization above key 2078 – 2080 zone. Price will need to clear and convert 2093.00 Central Pivot for further upside potential.
Odds of Decline > 10 = 71%; Odds of Decline > 20 = 41%; Average range = 19.75; Max Average Range = 22.00; Possible High = 2100.25 based on average range; Possible Low = 2071.00 based upon average violation of CD3 low on CD1.
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: June (M) Contract
Scenario 1: IF price can hold above 2081.50, THEN there is 60% chance of retracing to 2093.00 Central Pivot…Strength above this level targets average range 2100.25.
Scenario 2: Violation of PL (2081.50) maintains Bears dominance targeting 2078 down to 2074.25 STATX Zone. Below this zone measures 2071 Violation Target down to 2067.25 TargetMaster Breakdown Target.
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