Crude Oil (@CL) was the weekend’s major development after OPEC+ agreed to cut production by a record 9.7 million barrels per day, but prices are mixed in volatile overnight trading on concerns that the cuts will not be enough to head off oversupply as the coronavirus hits demand.
Source: Seeking Alpha https://seekingalpha.com/
Stock futures are pointing to another down opening while overseas markets are positive.
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Friday’s Session was Cycle Day 1…Price vaulted higher on RTH OPEN as bids persisted throughout the session. Mid-Afternoon “end-of-week” position squaring (selling) closed gap and price settled mid-range.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into today’s Cycle Day 2…GLOBEX Session price auctioned lower to 3 Day ATR (2727) which has found responsive buyers. Price is currently trading higher, recovering some of overnight losses.
Normal expectation for CD2 is for “back n fill” throughout the session to absorb recent gains. We are anticipating 2800 – 2750 zone to develop some balance on pullbacks.
P – VA High = 2802 P – VA Low = 2768 P – POC = 2780
Bull Scenario: IF Bulls hold bid above 2768, THEN initial upside estimate targets 2787 – 2800 zone
Bear Scenario: IF Bears hold offer below 2768, THEN initial downside estimate targets 2735 – 2715 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Pre-RTH price is currently trading mixed…off overnight lows and below prior session highs. Expectation is for a normal CD2 “consolidation type trade today.
P – VA High = 8256 P – VA Low = 8170 P – POC = 8214
Bull Scenario: IF Bulls hold bid above 8185, THEN initial upside estimate targets 8214 – 8240 zone.
Bear Scenario: IF Bears hold offer below 8185, THEN initial downside estimate targets 8153 – 8130 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
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
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