The last few days have given us typical examples of my favorite upside trade: the Spring.
On Monday, we set up for the Spring story on the daily chart. I wrote about it in my last post, here. In that post, I mentioned that the 1327 area could pose difficulties for the rally, and we did see some minor supply come in at that level yesterday.
But the market did not give back much and this morning in the pre-US session, it offered another Spring for the alert trader. Note the nice “tell” that the momentum oscillator gave on this spring (I will show you the details of this in next week’s training webinar).
Today’s early morning rally ignighted by the spring drove decisively up above the 1327 level, and then came back to test it for an excellent long entry or pyramid addition to the spring trade.
I view the market as having enough legs and with little evidence of supply such that the early July highs (1354.50) should at least be tested. We will see.
Springs are truely great trades. If you aren’t familiar with them or want to learn how to trade them in depth, you can take a look at: Trade Setups: Wyckoff Spring.
We have an in-depth web training session on using the momentum oscillator next week. We will spend 2-3 hours on how to use this helpful tool – including trade setups, so it really will be quite comprehensive. You can learn more about that here: Momentum Oscillator Training Webinar.
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