Key Directional Analysis That Is Playing Out

Hey gang! Welcome back, this is Jordon here with you tonight. I wanted to talk to you about some key things that are going on in these markets. Right now, I have oil on the daily chart. You’ll notice right away that this positive divergence has really begun to play out. It’s hopped up above this 20 and now it’s moving through the daily channel area. It actually hit all the way to $53 today – which is a relative high on oil that we haven’t had for quite a while now. IF I put it up on the weekly chart, the first thing that you will notice is how much space is between the speed lines and the 20 EMA. We could easily come all the way to the $62-63 which is $10 from where we are today and still be in this mess of down trend. So, we will be looking for oil longs for a few days.

As for a couple of these currencies, you’ll notice that a lot of this positive divergence has been playing out in a bunch of these. Here, in the Australian dollar, we have positive divergence with the angle of attack coming down in price and almost completely sideways, if not slightly higher in indications. You can see how this has started to play out in this Aussie as it has bounced off from the low and closed as a doge star in the day. Then, something similar is happening in the British pound sterling, where it managed to actual start its day near the bottom and come all the way up rushing toward that 20EMA. Again, we are seeing all of this positive divergence play out. If you are looking to trade some of these currencies, watch of for the divergence as a lot of these things are beginning to rebound. If you are looking to short just because you are seeing lower lows, that may not be the best battle plan. As far as the Euro is concerned, this one has really jumped hard jumping out of its dollar 1420 area, making new highs, and coming straight into that 20. That one might be a good candidate to possibly take higher if it can continue to go into the 20 and close above the 20 – that could be a new launch pad for it.

As far as Stock Index Futures, I want people to see that we are starting to finally come out of all this gobbly-guk. We have two indices right now that are officially over and closing for the day. Then, we have two other indices that are very close to closing and over. So, tomorrow, we will be looking for longs over this key support and resistance area that we have been watching these last few days. A lot of great education in the room, a lot of small lot trading, a lot of important information keeping disseminated, trying to keep our powder dry as the prices begin to rise. As it comes out of all this mess, we’ll be looking to take more aggressive longs as it will have less resistance around it to keep it from really moving. That will increase our expectation for run. Rob is still Orlando, FL and he will be over in Scottsdale in a few days. I know he is really excited to come back. You will see Rob again in these videos and in these videos on Monday. I will see you tomorrow in the live trading room where we do some more small lot trading or in the nightly videos.

Leave a comment!
Read previous post:
Here’s What We’re Looking For Next

Hey gang its Jordon here with you another great day in the trading room lots of great trading concepts and...