May 29th Trade Ideas
Looking at the WTI Crude Oil market, we continue to consolidate overall. Thursday saw the market bid down towards the $56 level, but this is the bottom of the consolidation area that we have been in since the middle of April. The fact that we bounced and formed a bit of a hammer suggests that we are going to bounce and stay within the consolidation area leading up to the $62 level. We are buyers of calls as long as we are above $56, and will remain so.
The EUR/USD pair continues to be a bit of a conundrum for most traders out there, as we see so much in the way of economic announcements and more importantly, rumors going around the world that have a great influence on the Euro in general. We look at the 1.10 level as the decision line, meaning that we are buyers of calls above 1.10, and buyers of puts below that number.
The FTSE fell during the beginning of the session on Thursday, but found enough support at the 7000 level to turn things back around and form a hammer. This tells us that there are buyers below, specifically at the 7000 level. With this, we are buyers of calls going forward, and we believe that there’s no way to buy puts. As long as we are above 7000 in the FTSE, we are buyers of calls.
Disclosure: None.
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