Both pivots shown look promising for bottom-fishing, so I’ll recommend that you do so at the upper number with as tight a stop-loss as you can abide –no more than 5 or 6 ticks in any case. To avoid having the order go unfilled if the futures turn precisely from the 1.1095 target, place your bid a tick above it. Keep in mind that if you use an initial stop-loss of six ticks ($72.50), you’ll need to get at least three times that, or 18 ticks, in-the-black before implementing a trailing stop. This is a single-contract trade, but you can step up the size to four if you use ‘camouflage’ to establish an entry price. ______ UPDATE (Friday, June 6, 12:03 a.m.): Although the hysterical rebound following yesterday’s diving low was quite powerful, the damage was done when the futures crushed the 1.1095 midpoint pivot. Now, unless 1.1260 is exceeded to the upside, a move down to 1.0930 remains my forecast. _______ UPDATE (June 10, 1:07 a.m.): Interpolating for the SEPTEMBER contract, the downside target lies at 1.0939. Look for a potentially tradable rally from the 1.1023 midpoint support of another pattern, and a worst-case low for the near term at 1.0811 if both of those supports get schmeissed.
