February 12, 2013

Crude Oil Anchor Chart Prep

Crude Oil Anchor Chart Prep
We can see
that Crude Oil completed the InsideOut Set-up we called long on Monday, giving
us nice trading opportunities to the long side when the sellers failed.  This morning we can see that Crude Oil is
hunting for the weekly highs, and we will be looking for a fake-out-breakout
above these highs, followed by a short-position selling the weekly highs.  If price keeps moving higher with strength
above the 98.24 we will then consider using the Wave Set-Up to buy long,
however, we know the market personality of Crude Oil like the back of our
hands, and we expect to see these buyers fail eventually and we will be waiting
to sell short when they do.
The
InsideOut Set-up will be in play this morning as the price-action tests the
highs of this range.  We will look for
the InsideOut Set-up short at the highs if we can see the buyers fail above the
97.77, 97.94, 98.15, and 98.24 resistance levels.
We can see
the symmetry resistance at the highs of the range when we zoom out for a few
weeks and look for the major swing-highs and swing-lows.
We can see
the double-bottom at the lows of the range, which provides us with overhead
resistance starting at 98.25 and going up to 99.25.  These two resistance levels make for
excellent profit-targets for the buyers and even better locations for a
price-reversal and a fake-out-breakout. 
We will be looking to sell short at these resistance levels.
Our day
trading plan for Crude Oil this morning is to sell these highs of the week, and
if price moves higher we will wait patiently for the failure and the
price-reversal so we can use the many resistance levels overhead as a selling
opportunity.  We have the weekly highs,
the price-wedge highs, the symmetry and double-bottom resistance levels, all of
which will be excellent places to sell short.
We should
also plan for the buyers being too strong, pushing to new higher-highs and
staying above the range-highs of 98.25. 
If we can get and stay above 98.25 we will then use the Wave Set-Up to
buy pullbacks and use the double-bottom resistance at 99.25 as our profit-target.  Remember to stay patient above the 98.25 because
the sellers will be out to get those buyers to fail, so we need to be very
confident that the buyers are controlling the price-action if we decide to get
long.

    schooloftrade

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