WICKS & TAILS: FIND THE SUPPORT AND RESISTANCE 6/18/13

Wicks and tails, overlapping bars, side-way action, buzz saw, etc.  What term you use to describe PA chop is not the point.  The point: avoid being taken out with narrow/tight stops, or avoid the area all together.

The preferred way to handle this:

• Find the outer support and resistance and wait for a break
• Find an internal support and play what is expected to happen

 W&T action early on taking traders out of the mix.  Look for the outer S&R (1637.5-1633.5) and wait for a break with a close above/below.

Or, look at the long bias and believe it will prevail after all the shake out and play a long at the EMA or the 50CB.  Aggressive stop would be at the lower support (33.5) with a conservative below bar 4 or 7 depending on your entry point.

Wait for the bias to develop.  Or wait until 10 AM when the initial market chop is likely to be resolved.  Many traders will avoid the first 30 minutes and the last.