Return to Breakout Level

Friday’s action was more in-line to what we were expecting for contract rollover…relatively quiet range-bound price action. The June 9th Cycle High is now solidly in place from which to establish short-side trade on any future failed re-test. Currently price is consolidating near the 1918 – 20 breakout zone…This is normal price action as it is important for bulls to be confident that this zone elicits new enthusiastic buyers that see value on this pullback. Failure to hold Breakout Level would suggest a deeper price correction necessary to attract new buyers.

Let’s get to the numbers:

Overnight trade is relatively quiet between Friday’s price range (1929.75 – 1918.25). Prior Session High-Low will be initial “markers” for any range expansion. Expectation will be to continue to test these boundaries for validity and strength…

IF price violates the Prior Day Low (1819.00) and converts, THEN downside price targets 1913.75 – 1912.25 zone, followed by 1911.25 – 1908.25. Any price strength would need to penetrate and convert the Central Pivot Zone (1924.50 – 1926.50) for a test of PDH (1929.75). IF price penetrates this level and converts, THEN retracement targets 1931 – 1932.25 zone, followed by 1934.50 – 1936.50 zone.

Trade Strategy: We will be responsive buyers at prior lows on successful testing of breakout zone (1918 – 1920 )…Failure to penetrate upside barriers will be sell opportunity.

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

Good Trading…David

Habitude Two
I am detached from the results. I think in terms of the process and the validity of the process. I understand that I am more than the trading. I do not tie a fragile ego to any day’s trading results. I have faith that over time I will make money. The results of any one trade are statistically unimportant. I think in term of probability. A single trade says nothing about me as a person.

Leave a Reply