Price Wedges and Crude Oil Inventories Give traders plent of opportunity today

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The James’ Report: Professional Resources for Professional Traders

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Today’s Economic News:

We begin our day with early morning news @ 830am Durable Goods, and then we go through the US Market Open at 930am and then into the 1000 FHFA House Price Index, and then onto 1030am Crude Oil Inventories.

Remember to watch the 3 Phases of Crude Oil Inventories on Wednesdays.

We also know that the Jackson Hole Symposium is tomorrow so we also expect that to be a drag on volume later in the morning today.

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Looking at the Charts:

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Crude Oil Futures

Our plan of attack today on crude oil:

– Bull Channel tells us to be buying pullbacks with new highs

– Buy at support as price falls with a bull channel

– Price Wedge and the INSIDE DAY both act the same. As price falls we buy the support, and as price rises we sell at resistance.

– Avoid the middle of the range as best we can, i know its narrow out there

– Be patient and wait for the best opportunities early this morning

– Watch the 3 Phases of Crude Oil Inventories

– Be disciplined not to over-trade too early to the news or too late with the major news tomorrow.

Gold Futures:

Our plan of attack on Gold:

– Beware the narrow price action, looks very sloppy and consolidated

– Price Wedges and INSIDE DAY tells us the same thing. Sell the highs, buy the lows, and avoid the middles.

– The OPEN of the day is nearby, and this is another red flag and area I want to avoid.

– There is no direction bias, we have both bull and bear channel colliding at this location, so this is a transitional area.

– As price falls im buying

– As price rises im selling

– When we break the lows of the bull channel i can then look to sell retracements

– If we break the highs of the bear channel then i can buy pullbacks.

Euro Futures:

Euro Futures are still trading in a range-bound market with a very obvious inside day and price wedge, which furthr confirms the same plan of attack we’ve had for 3 weeks on the euro.

Price Wedge tells me to sell the highs and buy the lows.

Inside day tells me to buy the lows and sell the highs.

Most important! The market personality over the past three weeks has told us to be very careful buying new highs, or selling new lows. We want to ‘fade’ the move, so as price rises we sell at resistance and as price falls we buy at support.

Selling 4473, and the PHOD 4497 as resistance.

Im buying the wedge lows 4342 down to 4300 and beware the BMT at 4349 may be in your way when that trade sets up.

The biggest challenge will be waiting patiently for the euro to fall to the lows so we can buy or to get back to the highs so we can sell.