July 16, 2012
- in Uncategorized by schooloftrade
Crude Oil futures opening at the highs of the price wedge
900am EST
Crude Oil futures opening at the highs of the price wedge fromthe slowest timeframe, 144-range chart. We
can see the price wedge and the inside trading day just below the PHOD. We can see trigger-zone support below and resistance
above which tells us that if price makes a run for the highs or lows we will
NOT sell the lows or buy the highs, we will do the opposite. We want to fade-the-breakouts and sell the
highs/resistance and buy the lows/support when we see an inside day within a price
wedge.
Our plan if price rises is to sell the highs of the pricewedge but if these buyers are too strong I’m going to buy pullbacks above 87.35
with a profit target at the next major resistance 88.00 big round number and
trend line resistance. If price falls we’re
in the perfect location to sell the highs of the range, and since we can see
the buyers have previously failed at the PHOD once before this tells us there
is a high likelihood this will occur again.
If we can sell the highs we try and take profit at the PLOD and the price
wedge lows as major support.
When we dig into the 55-range chart we can see
the PHOD as resistance and the bullish price channel highs as resistance overhead
which will put a damper on our buying opportunities until we know more.
