October 13, 2011
- in Uncategorized by schooloftrade
Crude Oil breaks Trend Line support; followed our plan for another winning day
815am EST
Dollar index is trading off the lows from Wednesday and rising as of this morning. We know the 89range chart shows us plenty of room to keep moving higher, so we expect markets to keep moving lower at that same time.
We are looking for selling opportunities on crude oil futures, Mini-Russell Futures, euro currency futures, and gold futures with the dollar index making new highs.
830am EST
We wait for jobless claims to get the market’s personality moving this morning. We need more SPEED in this market right now to give us more opportunity.
Crude oil futures trading just outside the range from Wednesday, so we’re looking to buy above the PLOD if the sellers fail and the buyers bring it back up.
If we break below the 83.97 we are looking for the fake-out breakout first and then with strong sellers we will sell retracements down to the BMT at 82.00
My plan for trading crude oil this morning is going to use this price wedge, PLOD, and bear price channel as my guide.
If price falls to new lower-lows I will buy the price wedge lows first as support, and then when we break the price wedge lows I look for fake-out breakout first, and then with strong selling I sell a retracement. Below 83.97 we should see some strong selling, but if we don’t, the buyers will bring this above the PLOD and we will be buying it.
As price rises I’m buying pullback above PLOD breaking the bear price channel and buying the price wedge lows.
850am EST
Dollar index is now trading in a short term price wedge, and our experience tells us that when the dollar index does that everything gets very narrow and sloppy, so consider this to be higher risk until the dollar index starts to make new higher-highs or lower-lows
905am EST
Gold futures is giving us a challenging chart to deal with this morning, lots going on.
If price rises I’m selling the highs of the bear price channel, and if price breaks new higher-highs above the price channel then I’m looking to buy pullback up to the next level of resistance overhead, where I will look for a reversal trade short around 1681.1 which is major resistance from our 89range charts.
If price falls to new lower-lows on gold futures I’m going to buy the price wedge lows, price channel lows, and the LOD around 1663.4. I will then buy above the PLOD if the sellers cant push it lower.
if we keep moving lower it will be a challenge to keep selling the lows of the bear price channel and the lows below the price wedge.
The only way I can sell below the 63.4 will be to sell the highs of the price channel just do NOT sell the lows of the price channel.
1015am EST
We’ve had a great day on crude oil so far, waiting patiently for the best patterns to come our way.
Russell futures are trading inside the range from Wednesday, inside day tells me to buy the PLOD and sell the PHOD and trade inside the current range.
We also have a price wedge so we will sell the highs and buy the lows of the price wedge.
1100am EST
We need to prepare for the rising or falling prices on crude oil ahead of the news.
Crude oil futures inventories come out higher than expected and demand is lower than expected, so price should FALL.
Lets wait and see the REACTION to this news before we trade again.
1130am EST
Crude oil futures went up to the highs of the bear price channel and we were ready for the 2-step reversal pattern for a total of 73 ticks of profit on the way down.
Kinda’ makes you feel better about that LOSS eh? What Loss??
