Relief Rally

Price has rallied strongly off of Friday’s low at 1890.25, which we view as a temporary secure low, though it may need to be tested at some future point to confirm. As for now price is higher by 10 handles trading at 1933.00 as of 8:00 am. Mr Market has been behaving near perfectly during this recent corrective pullback, having hit range targets on a daily basis offering traders solid trade opportunities.

Today is Cycle Day 3 (CD3) which typically has residual bullish momentum for the cycle. Bullish cycle targets (1922 – 23) have already been achieved and now exceed by 10 handles.

Average Range on CD3 = 17.75 handles; Odds of Rally > 10 =82%; Odds of Rally > 20 = 54%

***Note: The odds highlighted are not predictions, rather a guide based upon historical observed occurrences.

Today’s hypotheses:

Scenario 1: Residual bullish momentum has already pushed price above Prior Day High (1928.25) to reach initial penetration target of 1932.75. Further strength during pit session targets 1935.75, then 1953.50 TargetMaster Breakout Level. Initial support at PDH 1928 handle, then 1925 – 26 zone, with key support marker at globex session low 1923.25.

Scenario 2: Failure to continue higher in pit session may call for some profit taking from recent low…Look for initial support 1928…1925-26, then 1923 handle. Violation of globex low suggests deeper pullback to find renewed buyers. Levels of importance are: 1917.50 – 1918.75…3D CPZ between 1910 – 1914, TargetMaster Range Low at 1903.75.

Trade Strategy: IF price can stay above PDH (1928.25), THEN we’ll continue to look for buying the pullback with valid setups. Having reached CD3 penetration price targets in globex, we can also consider the short-side trade if buys fail to find value at higher prices.

Remain Flexible….Follow the Trade Rules….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.


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