Can The Ceiling Hold Us?
Can The Ceiling Hold Us?
If the bulls want to breach the current ceiling then someone better call Mackelmore & Lewis, because as of now she ain’t budging. After a pretty annoying and range bound session yesterday we remain pinned below 1940 which is an intermediate hurdle before we reach real resistance below approximately 1980.
However, that said, there is a case to be made for a reversal right here and now – I’d give that scenario about 30% right now. We’ll have to watch the momentum a little today to see if buyers can muster up a bit more mojo and kick this thing into fourth gear.
One of the charts that got away from me yesterday was crude. I don’t really like grabbing it on or after the roll-over day. Not because it’s too early – most serious energy traders start rolling roughly a week before the roll over date – but because the continuous chart is just coming into alignment. So I basically didn’t see it kissing resistance which is a shame as I wanted to grab some shorts there.
There is really no perfect way of charting futures contracts and there is no such thing as a ‘crude chart’. The best thing we get really is the continuous chart and there are various ways of producing it – all of them vary slightly. So be cautious trading futures especially around roll over time. Crude in particular is a beast as it rolls over once a month.
I grabbed a long in copper on a quick drop lower this morning. The hourly BBs here are compressing steadily and I expect a big move here either today or Monday. Let’s hope it’s to the upside 😉
EUR/AUD – I’m waiting for a little drop lower so I can grab a long position. The daily panel is looking intriguing as this may have been a fake out to the downside below that old diagonal I painted a while ago.
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