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Traders Gap Down -Feb 18, 2020

MARKET COMMENTARY

Though traders grind higher, this evening’s gap down is hunting for new support action. Tentative undercurrents remain as gold holds higher with the dollar. Our Fibonacci level of 3392 was tested and was rejected. Minor technical divergence remains present but the slope of motion holds. Tests of moving average support and recent weekly closes will be on the radar of traders and as long as we hold below 3380.5, sellers will try to strengthen a foothold.

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

WEEKLY PRICE ACTION
Earnings season tapers off but continues. Monthly support has shifted down with a midweek candle showing the way -now sits at 3212. Weekly support is 3325 while resistance and Fibonacci extensions show 3392 – 3402, if the trend holds.

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Great news here – we now have sharing links for each of the charts we follow that (if you have ThinkorSwim) you can load directly onto your charts.
NEW LINK FOR TODAY’S TRADING DATA EXCEL SPREADSHEET

Individual TOS Chart share links for ES_F , NQ_F , YM_F , CL_F , GC_F

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 18, 2020

WEBINAR RECORDINGS ARE AVAILABLE BY REQUEST

COMMODITY & CURRENCY WATCH
Gold has broken back above 1574 confirming the rounding bottom we were watching. Higher levels certainly seem to be on the horizon with a test of 1600 likely ahead. The US dollar is holding over 99 in a breakout as a flight to safety in the dollar continues – a front running of the Fed having to lower rates. WTI is finally holding a bounce off support and working off its oversold levels.

TRADING VIEW & ACTION PLAN
We are still looking at choppy news-driven upward grinding 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. If levels near 3370 fail, we will have a much greater chance of bearish action building before buyers try to engage again.

The theme of INTRADAY motion is: POTENTIAL RETEST OF BREAKOUT under minor technical divergence and holding a retest of support.

POSITIVE AS LONG AS WE HOLD ABOVE 3369.75ish today (with big spikes likely with shallow fades back into breakout)

CHOPPY BETWEEN 3354 AND 3379.75

NEGATIVE AS LONG AS WE HOLD BELOW 3365ish 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 present only

METASTOCK SWING LONG -in play – a small reversion to the mean formation showing as possible now that a red diamond has shown up. Pullbacks are buying zones.

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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