August 16, 2011
- in Uncategorized by schooloftrade
Import prices rise; earned our daily goal day trading Crude Oil and Gold Futures
We wait for 830 news to come out and we get ready for our day ahead.
Crude Oil Futures are at the major resistance levels on the 89range chart.
– Bull channel
– Bear channel
– Sideways Range (resistance overhead and support below)
We know we have to be careful buying around the 88.00 big round number and the highs of BOTH these price channels.
Bull channel = buy pullbacks with new highs, and buy support as price falls.
Sideways Range = buy the lows as support, sell the highs as resistance, and avoid the middle of the range.
Inside Day = buy the lows and sell the highs, trade INSIDE the current range, and beware the fake-out breakout. Look for the perfect breakouts to trade, rather than the higher risk breakouts.
Our plan of attack is simple today. As price drops im buying support first, and then if we break that support I will then sell retracements down to the next level of support.
Example: Sell below 86.38 and take profit at the next support level of 84.62
835am est
We are lacking market personality. Higher highs, lower lows, follow-through, increasing speed, and a direction that is easy to find.
It’s hard to define what personality is, but you know it when you see it.
930am est
Russell Futures are trading in a bull price channel so we’re buying at support when price drops and buying pullbacks with new higher highs.
Beware trading into the overhead resistance (highs of the channel) and then look for new highs above the resistance to buy more pullbacks.
As price rises I’m looking to sell the resistance first, but with the bull channel I will look for selling opportunities as short-term, and then look for the resistance to break and turn into support so i can then buy a pullback with this rising price.
If price falls I’m buying support levels of 02.2, 91.1, 86.5, 75.1, 71.2 first. Then, if we break the support I will sell a retracement and take profit at the next support level below us. Then look to buy that support once again.
Euro Futures are flat as a board this morning at 935am looking for clues for the direction ahead.
935am est
The markets don’t have much personality right now, looking for clues and waiting for something to happen.
Crude Oil futures are in the middle of their range. We’ve earned 100 ticks on crude this morning when it dropped, and now we wait for more information.
We want to buy the support at 86.63, 84.62, 84.02, 82.72 as price falls.
We want to sell the resistance at the highs of the bear channel 88.00 and 88.05 swing high overhead.
We have a short term bear price channel that means we now can sell at the highs of the channel as the higher % trades.
Beware the support levels below us because the major BULL CHANNEL is still the most important aspect of this day.
Once we break below 85.62 we then can look at more trades to the short side with higher %.
So trade short but beware the support will hold below you.
1000am est
Getting sloppy as crude oil transitions from buyers to sellers in control.
We need to prepare for our next possible trades so we can wait patiently for them to come to us.
1045am est
Momentum now goes from overbought to oversold very quickly and this tells us to be very careful now.
We’re almost to 11am est which is when this morning session i expected to be too dangerous to trade.
