How Do I Trade Today’s Breakout? Buy It? Sell It?

Video Length: 00:48:09

We’re back in the action again, and we have a busy week ahead of us…

With the end of the month, big news on the schedule, and a handful of rather convincing breakouts on the charts today, tomorrow should be an excellent day in the markets…

But here’s the question – what’s the best way to trade these breakouts?

The Emini and Nasdaq both got bull breakouts, while Gold got a bear breakout. Do we buy these? Sell them? What’s the best entry pattern? 

Not to worry, I’m going to cover all my favorite breakout setups in tonight’s video…

E-Mini S&P (ES):

(Click on image to enlarge)

E-Mini Keys to Success:

  • Friday’s bull run turned sideways into a range on Monday
  • Buyers retested Friday’s high, now we look for a breakout higher or failure and move back down into the range below.
  • Bulls want to breakout to new all-time highs
  • Bears want to short back into the range price-magnet below

Best Trades for Tomorrow: 

  • [UP] – 123-breakout to buy (or) nested failure to sell
  • [DOWN] – 123-Reversal to sell
  • [SIDEWAYS] – sit on hands, use failures to sell above the range

E-Mini Nasdaq (NQ):

(Click on image to enlarge)

Nasdaq Keys to Success:

  • Bulls in control, testing the ‘pendulum swing’ resistance above multiple ranges (price-magnet) waiting to drag price lower.
  • Bulls want to breakout higher up to 13,300
  • Bears want to get short going back into the range below.

Best Trades for Tomorrow:

  • [UP] – 123-breakout to buy (or) nested failure to sell)
  • [DOWN] – 123-Reversal to sell
  • [SIDEWAYS] – wait for the range, sell above the high with failures

Gold Futures (GC):

(Click on image to enlarge)

Gold Keys to Success:

  • Gold rolled forward to the 06-21 contract this week.
  • Bears finally break free from last week’s nasty trading-range
  • Weekend GAP and range acting as price-magnets overhead.
  • Strong bear breakout suggests another leg in the same direction
  • Bulls want to reverse momentum and go back into the range
  • Bears want to get short off overhead resistance
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