As last week drew to a close, the futures looked to be developing thrust for a shot at the 1273.80 target shown. Although Thursday’s upside penetration of the 1232.65 midpoint resistance was decisive enough to shorten the odds of a push higher, the market environment evidently was not favorable to attempt it on Friday. Now, a ‘mechanical’ bid to get long at 1232.65 can be used once the red line has been exceeded in a way that meets our criteria for this type of trade. Basically, that would imply a thrust initially into the range 1236-38, followed by at least three consecutive bars that have some white space between the bottom of the bars and the red line. A relatively hefty, 1218.00 stop-loss would be needed, but you can reduce the initial risk by as much as 95% by using ‘camouflage’ to get long once the criteria for a ‘mechanical’ bid have been met. I’ve sketched a hypothetical entry set-up for your further guidance.
