crude oil day trading strategy

Crude Oil Futures trading in a bear price channel with lots of overhead resistance before we head into the 830am Jobless Claims news.

we can see the price channel highs, we can see the previous high of day, and we can see the Channel resistance, AB=CD reversal Zone, and the Zig Zag Pattern reversal zone all above us as potential reversal points overhead.  We will look to sell as price rises into these levels of resistance.  If price moves through the resistance with strength we will then look for the fake-out breakout and then if price wants to keep moving higher we will buy a pullback with strong buying.

The key as price rises this morning will be to stay patient and wait for the opportunity to sell it off at the highs of the channel and the major resistance we see overhead.

If price falls we need to keep looking for opportunities to sell retracements with new lower lows, keeping an eye on the 99.00 as a sloppy magnet for price, and then selling more below 99.00 taking price down to the previous low of day.

Crude Oil Day Trading Strategy

The Crude Oil Day trading strategy is well defined with this 34-range chart.  We can see a new short term bull price channel along with the Inside Day from yesturday.  As price rises im selling the highs of this channel and the trend lines as resistance.  There will be a higher risk buying opportunity above the Previous High of Day, but look for the fake-out breakout considering its above the trend line as resistance.  If price keeps rising we will sell the resistance at 100.63-100.75 and also sell the 101.30 area as major resistance levels.  You can see there is little buying opportunity as price rises.  If price falls off these highs we are selling retracements all the way down until we get to buy the channel lows and then sell new lower lows with retracements if we push lower.  Looking to buy or take profit at the Previous Low of Day and then if we go below PLOD selling retracements.

we found a double-bottom on the 21-range chart which gives us another level of overhead resistance and we can see the early-bird definately got the worm on that selling opportunity.