Back n Fill

In Monday’s Session price pulled back about 10 handles (think 10 Handle Rule) in an orderly fashion as was laid out in  DTS Scenario 2 : Failure to attractive new buying above 1978.25 (Key Resistance) suggests the need to auction prices lower to find renewed buyers. Key levels to watch will be 1970 – 72 zone, followed by 1966 – 68 with 1964 level as “Key Support Marker”. Any break below this level we’ll update live in trading room.”

In early morning trade price is currently within support zone (1966 – 68) and above “Key Support Marker” (1964.00). Volume is relatively light at 96K as of this writing (7:45 am). Expectation is for some further search for increased responsive buying within support zone.

Let’s look at today’s hypotheses:

Scenario 1: IF price can hold key support zone (1964 – 66), AND convert prior session VTMP (1971 – 72), THEN odds favor a retracement test of 3D CPZ (1973.50 – 74.50).

Scenario 2: Failure to convert VTMP (1971-72) suggests further search for renewed buyers. Violation of Key Support Marker (1964.00) on increasing volume raises odds of deeper pullback which targets 1963.25, followed by 1960 – 1958.75, with STAT-Xtremes 1955.25 – 1956.75.

Trade Strategy: We will continue to defer to bullish side until there is a definitive change of character (COC). Buying pullbacks with valid triggers within and above key support is the play. Any violation of support and we’ll shift gears to favor short-side trade. As always we must focus on market generated data with favorable probabilities. Any failure to penetrate upside key levels will offer shorting opportunities as well. Remain Flexible to both long and short side.

Focus on the Trading Process…Not the Outcome  ALWAYS USE STOPS!

Good Trading…David

Habitude Five
I think in terms of probabilities. I do not know, all I have are probabilities. Probabilities are at the core of my decisions. Through consistent application of the probabilities, I will win.


Leave a Reply