November 10, 2010
- in Uncategorized by schooloftrade
Day Trading Opportunities On Crude Oil And Gold Futures
I’m watching gold and crude oil futures on multiple tiimeframes and we have some great trading opportunnities to watch right now.
Lets start with gold futures:
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Gold is trading in a slightly bullish channel right now on this 34 range chart. we have two options for this trade; play the breakout or the failure of the breakout.
I really like the potential of trading above the previous high of day, so im going to wait for 1410 to buy the breakout of this channel.
I would rather take the failure on this breakout, looking to sell the highs of this channel with an entry below 04.6. we may see this price go up to test the PHOD and then come right back down into the channel, so dont give up on this trade if it blows through the highs.
Lets take a second look at gold futures:
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In this slower timeframe you can see gold in a strong uptrend and channel pattern.
This pattern is an easy one to spot, and buying the lows of this channel is a high percentage opportunity with very little risk. the odds are in our favor for this move to go all the way up to the highs of the channel around 1440, which is a hefty profit.
Look for entry long above 1408, which further confirms the PHOD of 1410 on the trade we discussed above. im looking really good above 1410.
I’m also watching crude oil for a price reversal off the highs of this price channel
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This is a great opportunity below 48 on this crude chart. notice the BIG range down to 84.50 which makes this a low risk, high reward opportunity.
I’m going to stay away from buying at these highs right now because we really havent tested the highs yet, but I will definately look for another reversal trade if we test the highs again later this week.
I like do scalp these sideways trading ranges on crude oil as well, they make for low risk and predictable opportunities.
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This is a great example of our auto levels indicator marking the highs and lows of the range so we can buy the lows of 85.00 and sell the highs of 32. stay away from the middle of the range, and dont be afraid to buy a pullback if price moves above this range back to the highs of the channel.
As always, i will review these in training on wednesday with members, so please be sure to attend.
