- in Uncategorized by schooloftrade
Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
Crude Oil Futures have broken to new highs this morning, leaving the old wedge pattern behind and looking for new levels today.- Price Wedge
- Price Channel
- Overhead Resistance
- Previous HOD / LOD
The first thing I notice is that we’ve broken the highs of the massive price wedge in thich yellow trend lines. This wedge will try and draw price back DOWN below 103.00 so I will be looking to sell below 103.00 to enter back into this wedge.
I now see a price channel forming on this 34range chart. I used my 89range as my guide to draw the thick dotted yellow trend lines to define the highs of the price channel.
Bullish price channel = buy at support using a pullback, which is exactly what we will be looking to do. With the dollar on the fall we can look for easy pullbacks inside this upward trend for easy trading opportunities.
One easy way to trade a price channel is to sell the highs first for a short term scalp short, and then look for new highs to be made, wait to buy a pullback after you see the new highs, take profit at the next level of resistance, and repeat the process.
I also notice we have major resistance overhead at 106.50 so keep that in mind for a final target, or a place to look for a short entry on a price reversal.
and lastly, remember to keep an eye on the PHOD and PLOD, they will always act like magnets. We are above the PHOD but it looks like we may get a chance to sell < PHOD.
I will always be looking to buy support and sell resistance using the PHOD and PLOD so keep an eye on those levels as well.
We see the gold futures have broken the bearish price channel and now trading in a sideways range looking for more direction. will it rise to test the swing highs from earlier this month or will it fall to drop back into the channel or the wedge.
very similar to crude oil, we see a few important things on gold:
- Price Wedge
- Bearish Price Channel
- Sideways Range
- Overhead Resistance
First thing i notice is we have broken the price wedge, which will attract prices to re-enter the wedge from the highs. I will be looking to sell the highs of the wedge below 1419.5
Bearish price channel is also below the 1419.5, so I will also look to sell below that level, getting us into the highs of the price channel.
Next i see the sideways range, and this is clearly a market looking for direction after a breakout. We want to sell the highs and buy the lows of a sideways range.
I will also buy a pullback if we break above 1435.0 and I will be a seller first as price rises. So im selling resistance on the way up, and then keep an eye on new highs to buy a pullback.
The same is true if price drops. Im buying support first, selling the retracement if we see new lows.
I also noticed major resistance from previous swing highs at 1441.7 and 1445.7, which were also confirmed by our auto levels indicator, so look to sell these levels of resistance, and then look to buy a pullback if we break new highs above them.
