October 20, 2011
- in Uncategorized by schooloftrade
Crude Oil and Russell trading opportunities this afternoon
Crude oil futures:
We have broken the lows of the bull price channel so we use the ‘price channel break’ price structure to plan our attack this afternoon.
If price moves higher we buy above 85.31 which is above the highs of the ‘reversal-zone’ on the price channel break structure. We will also buy above the PLOD as the sellers will have failed above PLOD. We take profit at the price channel lows at .85.60 and then look to buy the price channel lows above 86.64 and 87.12 for the more conservative entry.
As we move higher we take profit at the big round number 88.00 which is also the swing low from the price channel highs earlier this morning, and the final target of 88.80 uses the next major level of resistance. I will then look to buy a pullback to test the PHOD and then sell the PHOD as well as the resistance above it as we get up to the price channel highs.
If price moves lower we sell short below 84.64 using the ‘reversal-zone’ as our guide. Below the ‘reversal-zone’ we know the sellers are too strong we want to sell along with them. Take profit at the 89range BMT and major support at 84.00 . Then beware trying to trade around the BMT, this will be very sloppy.
Mini-Russell Futures:
Russell trading lower this afternoon with the dollar index making new higher-highs. We have a bear price channel on both the 89range and 34range charts. We know the ‘reversal-zone’ on the 89range chart has already been broken, so we want to stay focused on the short side this afternoon.
We then use the 34range chart to find a more recent price channel that we can use to plan our trades this afternoon.
If price moves higher off the lows of this price channel we will be waiting for the selling opportunities at the ‘reversal-zone’ start at 688.3. we will sell the price channel highs and the resistance at 690.8 and the ‘reversal-zone’ highs or 692.2.
If price moves higher above 92.2 we can buy pullback considering the sellers were not strong enough to keep price within the price channel. Target on the long trade above the ‘reversal-zone’ will be the BMT / OPEN around 693.0 and then the 95.1 lows of the price channel break ‘reversal-zone’ will be an excellent final target.
If price makes it back up into this ‘reversal-zone’ above 95.1 we need to be patient to see where price goes from there. If price moves higher above the ‘reversal-zone’ 97.0 we buy pullback up to the next major resistance at HOD 700.3 so take profit at the big round number 700.00
If price falls out of the ‘reversal-zone’ above 95.1 I will then sell retracement with the target of the lower ‘reversal-zone’ 92.2, PLOD 88.9 and 88.3 as the final targets for the short.
We will then sell the highs of the price channel and bring it all the way back down to the price channel lows.
If price stays at these lows we want to buy the price channel lows, beware trying to sell the price channel lows. So as price falls to new lower-lows we want to look for a 2-step reversal pattern with oversold momentum as a buying opporutnity.
Euro currency futures:
Euro is the exact same spot as it was earlier today. We want to sell below 1.3645 buying the support levels below the price wedge on the way down.
As price falls to new lows I’m buying the Euro until we break below the 3645 and then I take a new lower-lows and sell a retracement down to the next support level of 1.3573 for the target.
As price moves higher (and dollar index moves lower) we want to buy the Euro above the PLOD as the sellers will have failed with the target in the middle of the price wedge at the BMT 1.3766 area. I would HOPE the price would go up to the highs of the price wedge, but a conservative target will always be the BMT. Final target at the price wedge highs will be more aggressive.
I will then sell the PHOD as resistance first, also the highs of the price wedge, and if price move higher I need to look for selling opportunities at the resistance overhead 3905, 3925.
