Trading Plan – W pattern 2015

April 13, 2015 Corona, CA Trading Plan the W Pattern for April 2015 on the S&P500 emini futures contract.

Trading plan for the W Pattern – we are presently in a congested trading zone from 2031 to 2100 as shown in the green box on the chart.

This has given the sellers two pushes from the double top and buyers following up for a third attempt on the resistance at the top of the consolidated zone.  The 50 MA is acting as a Point of control between the buyers and sellers.

If you notice the move from point 3 to point 4, you can see the move to point 5 is about a 50% retrace of the buyers move.  Then support follows.

The W pattern holds the supporting trend line and sets the base for what could be the next move up.

The projected equidistant price move is 2140 if buyers stay in control.

Always manage your risk first.  Although this pattern is a continuation pattern to new highs, the market has many outliers that could reverse this especially as we are headed into earnings.

Failure of the W pattern – we could see sellers move in.

If Sellers move in, we could see price close the open Gap at 2016 and then a move to the 200MA where if we stay above it the bull market is still held in tact.