Today, some trade setups:
Since popping to a seven-month high June 26, notice how September
(USU2:CBOT) have been unable to close above the June 14 gap.
That makes them 0 for 3 over the past three sessions in holding support above the previous consolidation, making the contract top-heavy and increasing the chance that shorts against resistance at 103 3/32 to 103 5/32 and 103 22/32 to 103 28/32 could fend off any attempts to push higher. T-bonds project down to 100 25/32.
futures (NDU2:CME) closed below the closes of recent tail bars, suggesting a failed reversal pattern and more downside.
(DXU2:NYBOT) traced an outside engulfing bar up that sets it up to potentially fill the June 26 gap up to 108.00.
Going the other direction, the September
(CDU2:CME) left an outside bar down, which appears to be a topping pattern at the contract high. Also notice the Canuck buck has been unable to close above the contract high (not shown). Monday's lap lower also works to confirm Friday's topping bar.
(HGU2:COMEX) is a five-bar pullback from a low that has held the past two sessions at 61.8% of its June 4-24 decline. Look for a short-term, countertrend decline. (The weekly trend is still up.)
Finally, notice how the Cooper Angular Rule of Four Breakout I
mentioned June 25 is working out in December
(CZ2:CBOT). It has led to the best rally in this market in a year.
Marc Dupee is an independent trader and co-author of the book
The Best: Conversations With Top Traders. Dupee was formerly markets analyst and futures editor for TradingMarkets Financial Group. At time of publication, he held no positions in any securities mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. While he cannot provide investment advice or recommendations, he invites you to send your feedback to
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