Crude futures are largely unchanged at almost $50 a barrel ahead of an OPEC technical meeting which starts in Vienna today. But oil prices are set for their biggest weekly loss since mid-September on concerns that member nations won’t be able to agree on an output deal. Venezuela’s Oil Minister Eulogio del Pino announced earlier this week that 12 non-OPEC states have also been invited to the gathering.
In Asia, Japan +0.6% to 17446. Hong Kong -0.8% to 22954. China -0.3% to 3104 India +0.1% to 27941.
In Europe, at midday, London flat. Paris +0.3%. Frankfurt -0.2%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude -0.3% to $49.57. Gold -0.2% to $1266.70.
Ten-year Treasury Yield flat at 1.85%
(Source: Seeking Alpha)
Having reached prior cycle targets opened the door for the decline to occur which began on Cycle Day 3. Bond market weakness (rising rates) was the main culprit along side recent negative earnings reports from high-profile tech companies.
Today is Cycle Day 1 (CD1)…The decline which normally is expected on CD1 has already occurred with targets having been reached and exceeded. As such, a rebound-rally may begin at any time. Should sellers reappear during cash session, lower target levels measure 2115.50 – 2110.00.
Range Projections and Key Levels
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (Z) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: Price is currently rebounding approximately 10 handles from deep overnight low at 2116.00. Bulls will need to secure this low from additional selling waves. Further strength above 2126 handle will help bulls stabilize current bear attack. There is overhead resistance layered between 2130 – 2136.
Scenario 2: IF price violates and converts PL (2122.50) to lower resistance during cash session, THEN long liquidation may unfold with lower targets measures 2115.50 – 2110.00.
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!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
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