Trading Setups and Strategy for the week of Sept 5th.
The Weekly Call is a new feature at The Art of Chart where we discuss the coming week and a potential trading strategy that can be profitable. This week we look at Live Cattle, Gold and the Nikkei
First up this week is Live Cattle or the future LE_F. This is a longer term trading strategy as we are looking for a turn later in September. We expect volatility to be high during this period. Live Cattle is in the process of turning in the next few weeks. The one hour chart below shows an oversold RSI condition which should create a sharp back test this week, but after Sept 12th we are expecting downside action into the low window (LW on the chart) around Sept 28th. Watch for positive divergence during this period. We expect this to be a significant turn in Live Cattle for the coming months.
Watch 100.675 for a bounce and weekly pivot at 103.775 for resistance then a last legg lower to first target of 98.625 and this can potentially get to 95.875.
Cycle Chart for Live Cattle
Gold has been in a back test for weeks from the recent high from July 6th and we have been on the hunt for a turn. The low window (lw on the chart) is playing out as expected between 1300 and 1307 with timing between 8/28 and 9/5. Currently we have monthly pivot resistance at 1330. We expect a higher low near the trendline and then 1365 followed by a backtest and then a high window(hw on the chart) of 9/26-10/7 and a possible price of 1443. Time will tell if price advances to the full a=c but as long as the trendline is support we expect gold to go higher.
Cycle Chart for Gold
Our trading strategy on indexes, we are expecting the low window to end by Sept 8th and looking for more bullish action into month end. To take advantage of this we are looking to the Nikkei for a short term trade. On the Nikkei, look for a short term pullback no further than monthly pivot at 16584. By the end of September we are looking for a high window around the 17995 area. The high window extends from 9/20-10/2.
Have a GREAT trading week!!!