Very little on economic docket
With only the Housing Market Index numbers coming out of America, and the Trade Balance numbers coming out of the European Union, we believe that more than likely it will be a fairly quiet session as far as reactions are concerned. However, there are setups out there in the marketplace that are starting to catch our attention.
WTI Crude Oil forms reversal signal
The WTI Crude Oil market fell to the $40 level during the session on Friday. However, we bounced hard enough to form a bit of a hammer and that of course is a major reversal signal at an area that has been very supportive in the past. Because of this, if we can break the top of that hammer, we are call buyers with the anticipation of a reasonably significant bounce. On the other hand, if we break down below $40, this market could fall apart rather quickly.
Silver running into resistance
The silver markets slammed into the $15.50 level on Friday, an area that was previously supportive. The market will find a lot of selling pressure at this level, and therefore we are looking for resistive candles in order to start buying puts at this point. Silver is still very bearish overall, and we are looking to trade to the downside.
CAC looking for support near 4900
The Parisian index initially tried to rally during the session on Friday, but found sellers at the 5000 level. The market ended up forming a shooting star for the session, showing weakness in the market. The market should find support and we are looking for a supportive candle to start buying calls.
