The futures have tripped a ‘conventional’ buy signal this evening after retracing most of the rally that occurred in the dead of night. With a target at 1155.50, there’s about $14 of immediate upside potential. Accordingly, I’ll recommend using a ‘mechanical’ bid at 1141.30. This implies the futures must hover above the green green line for at least three bars after exceeding it and that, furthermore, the low end of those bars must not touch the line. An 1136.50 stop-loss would be required, but you can use ‘camouflage’ to cut the theoretical entry risk of $480 per contract by as much as 90%. The trade seems likely to trigger in the wee hours if at all, but if this hasn’t occurred by Wednesday’s regular-session opening, check in the chat room for further guidance. _______ UPDATE (Dec 28, 11:22 p.m. ET): We have an active trade on in this vehicle that is showing a theoretical profit of $960 at current prices. Sell a third contract now, with the futures trading a few ticks from p2=1150.80. The 1155.50 target can be used for exiting the remaining contract, tied to a ‘dynamic trailing stop’ that should shrink, always holding risk:reward at 1:3, as the target is approached.
