Crude prices that were lower during Asian trading hours turned back up later, as markets continued to digest reports last week of an OPEC production cut. The cartel informally agreed to reduce production to 32.5M barrels/day, but such agreements are a ways from firm when it comes to OPEC members, and the organization’s impact is lessened in today’s crude markets by increased output from nonmembers. WTI crude up 1%, to $48.71/barrel.
In Asia, Japan +0.9% to 16,598.67. Hong Kong +1.2% to 23,584.43. China+0.2% to 3005.51.
In Europe, at midday, London +1.1%. Frankfurt off (holiday).
Futures at 6:20, Dow +0.9%. S&P +0.8%. Nasdaq +0.8%. Crude +1.1% to $48.75. Gold +0.3%% to $1,320.90.
(Source: Seeking Alpha)
Markets successfully retested their Cycle Day 1 Lows and the rally began in earnest throughout the prior session, which was also last day of 3rd quarter. Overnight trade is slightly off prior highs in quiet trade action as Rosh Hashanah (Jewish New Year) runs through Tuesday, so expectation is for a relatively quiet trade session.
Today is Cycle Day 3 (CD3)…All cycle targets have been fulfilled, so as such, expectation will be for a relatively quiet session. Unless price can clear and convert PH (2168.25) the potential for the next Cycle’s decline can begin at any time. Key Support is marked between 2150 – 2153 zone.
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: IF price holds above 2158 SPOT and converts 2163 to upper support, THEN primary objective will be to clear PH (2168.25) targeting 2173.50 upper STATX Zone.
Scenario 2: IF price violates 2158 SPOT and converts to lower resistance, THEN lower objectives are 2153 – 2150 Daily and 3 Day Central Pivot Zone confluence.
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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