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Markets Stall At New Highs – Feb 7, 2020

MARKET COMMENTARY

As in many environments showing technical divergence with a strong positive trend, we headed to new highs before dipping back into congestion where we now hold heading into the overnight. The battleground of support sits near 3332-3337. The whipsaw widens the trading ranges and could easily deliver a deeper dip before stabilizing at these higher regions. Higher lows seem to be more likely to hold as the trend remains strong.

WEBINAR LINK IS IN THE PROTECTED AREA OF THE BLOG – Please login and scroll down for the link.

Note the divergent action from the prior post has given us a fade back into the breakout level of 3332 or so

WEEKLY PRICE ACTION
Monthly support has shifted down with a midweek candle showing the way -now sits at 3212. Weekly resistance is much higher with a Fibonacci extension showing 3364-3371

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NEW LINK FOR TODAY’S TRADING DATA EXCEL SPREADSHEET

REMEMBER, WE ARE USING AGGRESSIVE ENTRIES IN THIS MARKET– If those levels have passed you, simply walk your targets up the levels noted on the spreadsheet as the next entry as long as trend prevails.

WEBINAR LINK FOR THE WEEK BEGINNING Feb 4, 2020– no webinar Friday morning

WEBINAR RECORDINGS ARE AVAILABLE BY REQUEST

COMMODITY & CURRENCY WATCH
Gold has broken back above 1563 confirming the rounding bottom we were watching. If the participants fail to hold this region near 1556, we will focus on 1536 once more – and holding over 1570 could easily go to 1581. The US dollar is holding over 98 once again – the levels near 97.5 hold as support- as momentum builds to the bullish side, it seems like a press to 99 is on the horizon. WTI held deep monthly support regions and working on holding higher support near 51.

TRADING VIEW & ACTION PLAN
We are still looking at choppy news-driven markets after our deep fade recovers and sends us to new highs under technical divergence. SIGNAL LIGHTS ARE YELLOW-but much more bullish than before so look for higher lows at the first passes from resistance to support.

The theme of INTRADAY motion is: BREAKOUT under technical divergence

POSITIVE AS LONG AS WE HOLD ABOVE 3337.75ish today (with big spikes likely with shallow fades back into breakout)

CHOPPY BETWEEN 3312 AND 3346.75

NEGATIVE AS LONG AS WE HOLD BELOW 3314ish today (with sharp bounces failing and deep pullbacks holding)– choppy inside the range.

Follow short term trend and momentum signals while in the intraday trading environment and watch for weakness to develop away from your trade direction in order to leave. Please log in for the definitive levels of engagement today.

TARGET RICH TRADES

METASTOCK SWING SHORT – intraday trading signals

METASTOCK SWING LONG – intraday trading signals

Intraday LONG trading from support edges like the VWAP or tight moving averages will give you the least risk event for engaging – removing your trade at resistance

Intraday SHORT trading from resistance edges like the old highs or bigger moving averages will give you the least risk event for engaging.

Follow the candle trend until candles stop breaking higher.

Here’s a link to the METASTOCK software

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