Contract Rollover

Today begins quarterly futures contract rollover: Front-Month becomes September (U)…Volume traded will now be skewed as contacts being rolled will be split between June (M) and September (U) months.

***Note: We will continue to trade June (M) contract for remainder of this week since volume should be more concentrated with M-contract. Monday will switch to U-contact…So, please adjust your charts accordingly.

Today’s DTS will be based upon June (M) Contract Price Levels.

In prior DTS postings, we have been targeting 1938 – 40 zone for “key support” zone test…Yesterday’s LOD came in exactly at 1938.50…which is High Volume Node (HVN) from June 5th trade session. Strong rejection with “long-tail” reversal candle strengthens this zone as key support on future retests.

In overnight trade price has pushed up into 1946 – 48 zone, which becomes “key retracement resistance” zone. We will be keying off this zone to reestablish the short-side trade…Lower support will be marked between 1942 – 44 zone on pullbacks…Failure to hold support suggests a retest of lower level volume nodes noted above.

Trade Strategy: With contract rollover in effect, we are anticipating relatively quiet trade between newly established price boundaries, with more range-type trade characteristics. Buying the dips at lower edges and selling rips at upper edges will be the initial expected trade…We’ll make necessary adjustments during the trade session should conditions warrant.

Stay Disciplined….ALWAYS USE STOPS

Good Trading…David

Habitude Twelve
I am disciplined. I behave in a way to reach my goals. I do what I intend to do. I have the intent to win through right actions. I will be patient for patterns to emerge and mature. I am decisive. I decide easily and act promptly. I act in the right way and right on time. When there is nothing to be done, I will wait.



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