Oil prices are down in early trading after reports of increased production out of Libya and Iran cut into some of the enthusiasm over the OPEC deal from last week. The market is also anxious over tomorrow’s read on U.S. commercial crude after surprise drawdowns the last few weeks. Brent crude is down 0.59% to $50.59, while WTI crude futures are 0.90% lower at $48.37
In Asia, Japan +0.8% to 16735. Hong Kong +0.5% to 23689. China -0.01% to 9604. India +0.3% to 28339.
In Europe, at midday, London +1.6%. Paris +0.9%. Frankfurt +0.6%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.2%. Crude -0.90% to $48.37. Gold -0.06% to $1311.90.
Ten-year Treasury Yield Flat at 1.62%
(Source: Seeking Alpha)
Monday’s Session was quiet as expected with price trading within a relatively narrow 10 handle range. We stated in DTS Report 10.3.16: “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.”
Today is Cycle Day 1 (CD1)…The decline which began in prior session may continue should the power to be want price lower. Overnight trade has price trading within prior range near the 3 Day Central Pivot (2153.00), so current bias is neutral. Inner STATX Zones are: 2163 – 2165 75 (upper) and 2146.50 – 2144.25 (lower).
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 converts 2158 to upper support, THEN primary objective is to 2164.00 prior high.
Scenario 2: IF price converts 2151 to lower resistance, THEN primary objective is to retest 2146.75 price low.
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.”
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