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Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
- remember we have 1030am news for crude today
- Massive bearish price channel in yellow trend lines
- Wedge pattern in yellow trend lines
- Short term bearish price channel in blue
- Sideways range from 100.00 down to 96.00
- Previous HOD/LOD
We are in a long term bearish price channel in the yellow trend lines, and you can see a support trend line that also creates a nice wedge pattern from 96.00 up to 100.00
We also see a short term price channel in blue trend lines most recently, and we cant ignore the previous highs and lows of the day from tuesday.
We are trading at the highs of the short term price channel, so looking to sell the 99.00 first. From there im looking to sell the highs of the wedge around 100.00.
if price keep pushing through 100.0 im looking to sell at overhead resistance as price rises.
if price falls from these highs, hopefully we can grab the short from 99.00 but i will look to buy support on the way down to the lows.
Look to buy the lows of the sideways range, the lows of the wedge, and the lows of the short term price channel around 96.00, so we will keep an eye on that level for buying opportunities.
the gold futures coming off new lows from tuesday and it gives us a few things to watch:
- Massive wedge pattern in yellow trend lines
- Short term bullish price channel in blue trend lines
- PHOD and PLOD, and we are inside these levels
One thing we see right away is we are in the MIDDLE of all three of these, and we need to avoid trading the middle. Sell the highs, buy the lows, wait for a breakout, but avoid the middle.
The price channel in blue will be our first priority, sell the highs around 1411, using the BMT line as resistance for the short trade. We will also buy the lows *support* at 1400 if price drops to the lows of this bullish channel.
Bullish channel = long side is the higher % side
next, we see the PHOD and PLOD above and below us. I look sell the PHOD and buy the PLOD. Im goign to sell the 1417.5, 1429.3, and buy the 1380.7 and 1373.3
We are trading INSIDE the range from tuesday which makes us think the traders on gold are looking for some direction.
and we cant forget about the massive wedge. sell the highs of the wedge around 1420, 1429, 1431, all the way up.
buy the lows of the wedge around 1386, 1380, 1368 all the way down.
remember this simple rule…as price drops we buy at support, and if price rises we sell at resistance.
