By Omar Eltoukhy

Hey there Traders!!

IT’s that time again!  Below is my analysis for the upcoming session.  I have taken a little hiatus here because of the absolutely terrible markets over the last week or so and this week hasn’t been much better because of all the news and the markets waiting for the Fed statement this month and every month until the rate hike.  That said, I will resume posting two times a week my analysis starting again next week, since traditionally after Labor day marks the beginning of the “Fall Trading Season” in earnest and usually provides increased volumes and great trading.  Today, we must absolutely be careful around the news, but after the major stuff has been released, I think we might find some great setups.  I have also include the London Outlook video below so you can get an idea of what the members of goldtrademaster.com get on a daily basis as well as a peek a the wonderful system we use in our trading program.  Enjoy the analysis!!!

 Keep in mind some of the terminology has to do with the system our team uses in the program.  That said, I have tried to point out the actual areas since I know many of you reading this will not have the actual tools.  Also keep in mind that this is a VERY tough week to trade ANY market, so please use caution.  And AS ALWAYS, this information is for educational purposes only.  It is NOT a recommendation to buy, sell or trade any instrument or financial vehicle.

Goldtrademaster.com

Contact me directly with any questions about the wonderful program we have at:  Omar@goldtrademaster.com

OUTLOOK BY INSTRUMENT:

GOLD:  Has made the move below the key area of 1131.50.  Now we should look for a possible pullback to this area and secondary rejection from here.  Also, we are currently hovering above the even bigger area of 1125.00.  This is not only the primary target from a trade that originates from a rejection of 1131.50, but a good area to look for another breakout to continue the move down.  Be careful though, this area is not likely to be taken “lightly” by the markets, and is really our “line in the sand” on a weekly basis to judge whether we should be sailing back up or making a resumption of the downtrend.  On the buy side, 1131.50 could easily be used to initiate a long if we get a breakout back up and secondary move from there.  BUT, we really don’t have confirmation on the move higher until we get a move above 1138.50 and 1140.63.

OIL:  The champion of the week so far providing two great trade setups yesterday.  Once again, we have found ourselves locked into a sideways market that is tight.  All the better to form a setup though!  The most direct way into a trade is simply a breakout above 46.88 for a long if we close above that level.  More conservative is a secondary move from the breakout.  In either case targeting 50.00.  For the sell side, it becomes a little more complex, as essentially we need a breakout below 43.75 to confirm a further move down.  Look for some move at least below the bearish Dynafib at 44.80 to be on the conservative side for a short.  Aggressive approach is to simply trade the breakout below 46.00 although we will probably find good support at the SCZ area of 45.00 and/or the bullish DF at 45.40.

INDICES:  The FTSE setup to go long has worked today.  I will say it again:  Indices are the least desirable set of markets right now due to their lack of direction and follow through.  A potential FTSE trade can originate from a pullback and rejection higher (secondary trade) of the bullish DF at 6132.  Target is 6250.  Any move below 6093.8 is still our idea for a short, although we are getting a bit far from that now and seems like a stretch to even consider that trade.  The DAX is a little more amenable to a short with the breakout below the bearish DF at 10145 leading the charge back to 10,000.  That said, the bearish move isn’t really confirmed until below at least 10100 which only leaves a 100 point move between there and the MAJOR area of 10k.  Possibly we could wait for a secondary move below the major level to initiate a short trade in the case of a big Thursday selloff.  The buy side is much easier to setup, with a simple breakout above 10220 as an option for entry since we have already broken this level once today (bullish DF).  The DOW is in similar position to the DAX with a buy trade option now on the table from a pullback and rejection to the high side from 16375.  Any shorts can be considered if we start trading below 16250 in the case of the selloff.  Target is just below 16500.

LONDON OUTLOOK VIDEO:

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