Trade Plan for 5/23-5/27 - Bottoms Up!
Introducing a 5🍸 Trade Bias and Confidence Scale
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Last week I shared 3 things I was looking for as early detection of a potential market reversal and concluded that none of those things had happened yet. I also noted a potential bullflag on the silver chart.
This week I reassess the odds of a market bounce and what it might look like, tell you what I’m looking for to see whether or not precious metals will continue with a recovery and speculate on oil price action with levels to watch for. I also introduce a Bias (Bullish or Bearish) 5🍸 confidence scale for swing trades.
Summary of Market Action Last Week:
$ES/S&P 500 Futures continued the decline inside of the weekly channel ultimately bouncing at the end of the day on Friday at 3807.50 vs my 3801.75. ✅
$NQ/Nasdaq futures also bounced back inside of the bottom of its weekly descending channel (11650) closing at 11840.75. 💅
$RTY/Small caps futures was the only one of the indices to make a higher high and a higher low.🚨👀
Precious metals showed relative strength to the market last week. Gold held the critical support given last week, while silver and miners had higher lows. $GC/Gold futures bounced from 1785 vs my ‘last call’ of 1788.9🎯 and ended the week at 1842.1 just under my 🗝️ level of 1845.9🎯. $SI/Silver closed the week right under that black line resistance. $GDX bounced from 30.43 against my ‘double up’ level of 30.42.🎯 Substantial progress was made last week, but there’s no confirmation yet.
$CL/Crude Oil futures finished the week near flat for the third week in row after failing to hold above the critical resistance area this past week. This indicates to me that a big move is coming.
Here’s how the week closed out: