Markets
Oil prices have retreated to below $50 a barrel as a stronger dollar pulls crude off the 2016 highs hit this week despite a major attack by the Niger Delta Avengers. Militants blew up an Eni (NYSE:E) pipeline in Nigeria run by the company’s Agip subsidiary, marking yet another strike aimed at the country’s oil infrastructure. NNPC said Nigerian output stood at around 1.8M bpd in March, its weakest level in a year, and that figure is likely now significantly lower.
In Asia, Japan -0.4% to 16601. Hong Kong -1.2% to 21042. China closed. India -0.5% to 26636.
In Europe, at midday, London -1.6%. Paris -1.9%. Frankfurt -2.1%.
Futures at 6:20, Dow -0.5%. S&P -0.6%. Nasdaq -0.7%. Crude -1.6% to $49.74. Gold flat at $1272.30.
Ten-year Treasury Yield -2 bps to 1.65%
(Source: Seeking Alpha)
Economic Calendar
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count 2:00 PM Treasury Budget
PTG Trading
Buyers struggled throughout the prior session absorbing wave after wave of selling as bulls defended 2098.00 key support. Late day bounce relieved some of the built-up pressure into settlement. On overnight trade, sellers have again re-emerged violating 2098.00 level and driving price lower to 2092 handle which is 10-Day Average True Range Level.
Today is Cycle Day 3 (CD3)…Having violated key support (2098.00) pressure is squarely against the buyers…This action sets up “trapped-longs” condition unless price can rally back above 2098.00 and better if 2104 handle is achieved.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2104.00; LOD Range Projection: 2092.00; CD3 Max Penetration Level: 2116.50; CD3 Max Violation Level: 2086.25; Cycle Day 1 Low: 2097.75; 3 Day Central Pivot: 2104.00; 3 Day Cycle Target: 2121.75; 10 Day Average True Range: 12.73
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: June (M) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: Price will need to hold 2092 for any shot at bouncing back from broken support (2098)…Rallying back to 2098 would be first objective if they are able to regain control…2100 – 2103 zone has been heavily traded, so that would be a zone of potential resistance.
Scenario 2: Key support (2098) has been violated pushing price down to 2092…If price bounces back to 2098 this should act as initial resistance. Should 2092 be violated and converted to resistance, lower levels are 2088.25; 2086.25, 2084 extremes.
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!
Good Trading…David
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone. Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
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