GOOD MORNING TRADERS! TGIF! And welcome warmer weather this weekend!
The Russell index has a marvelous daily bull flag. It led the market higher on Thursday and is expected to have upside followthrough on Friday. The Daily Bars gave a Wide Range Reversal buy. All time highs are now within reach for this index.
Options expiration is expected to be a minor event as it is not a triples. However, a near record amount of call options are now in the money.
Now that Dec Crude is off the board, Look for this market to trade back up higher as well. Three pushes DOWN on the daily charts can lead to an A B C up – 77.50 – 79 is within reach.
Gold and Silver have tight coils……An upside breakout can lead to a daily Anti type of pattern additionally, GC and SI now have 2 higher lows on the 120 minute time frame. They need to confirm possible trend reversal though, with an upside breakout. The EC has a similar structure as well….short term resistance at Thursday’s high, but if the three bar triangle can lead to an upside breakout, this market can correct back up towards 127. As it was in the overnight session, the EC had a downside breakout.
Check out all the markets with three bar triangle breakout patterns for tomorrow. China Rate cut = catalyst…
Interestingly, a colleague went me a piece that I had written many years ago that described Richard Dennis’s work and how I came across the concept of three bar triangles as described by him. I will clean up this document and post it separately on the website blog. In the meantime, looks like the markets can have some fireworks on Friday!
Happy trading! Linda
Markets in BO Mode: