Narrow Price Ranges on Gold and Crude to Open our Week of Day Trading

955am est
– We wait for the news @10am est today regarding the Housing Market Index
– In the meantime, we have crude oil trading around the BMT on the 34r chart, which tells us to beware.
Let’s review the 34range chart on crude oil:
– Price Wedge, we are at the highs
– Sideways Range from 100.70 down to 97.09
– We see the PHOD is above, and the PLOD is below, this means INSIDE TRADING DAY
o Treat this as a sideways market that will NOT breakout, so sell the highs and buy the lows, trade INSIDE the range from Friday
– We have major levels of resistance at 100.70, 99.85, 99.52
– We have levels of support below us at 97.67, 97.09, 95.55
– These levels may not be used today, but if we need them, ill be happy I have them handy.
Lets plan our attack on crude oil futures:
If prices rise:
– Selling resistance first, and then buying pullbacks with new higher highs
– Never buying the highs, I wait for pullbacks
– Selling 99.40, 99.55, 99.73, and 99.85
– Avoid the big round number of 100.00
– Selling 100.49, 100.70 and avoiding the 101.00 BRN
– With the DX in a bear channel with new LL’s we can say the LONG trades will likely be the higher % position with the dollar trending down
If prices fall:
– I’m buying support levels first, and then selling new lower lows with retracements.
– I will not sell the lows, wait for a retrace off the new lows and then look for entry rules to confirm.
– Im selling the highs of the wedge below 98.75
– Im avoiding the BMT 98.69 and the OPEN 98.74 because these levels will be sloppy
o I am aware these levels (Open/BMT) are at the highs of the wedge, making it more difficult to sell the highs
– Buying 98.37 the PLOD from Sunday (not as important as the PLOD from Friday)
– Buying the lows of the wedge at 97.67 which is also the current LOD
– Buy major support at 97.09 the PLOD from Friday as well as the support at 96.16 and down at 95.55 the lows of the major wedge.