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Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
- Sideways Range(s) in the White boxes
- Price Wedge in the Pink trend lines
- Bullish price channel in yellow trend lines (above)
- PHOD and PLOD are above and below us
- Major Levels of resistance above us
- Major Levels of support below us
- Big Money Trigger Line in the dotted yellow line
The first thing I see is the price wedge in thich pink trend lines. You can see we used this on wednesday to make great profit, and today we are still trading in the wedge. We notice that we are getting VERY narrow towards the end of the wedge, so look for price to make a move up or down once it runs out of room in this wedge.
The next thing I see are the sideways ranges marked in the white boxes. We also consider the PHOD and PLOD in this assessment. The PHOD is above us, the PLOD is below us, we are trading INSIDE the range from wednesday, making this an Inside Trading Day, which means we will look to sell the highs and buy the lows of this range first. We expect the highs and lows to hold with an inside day like this.
The Bullish price channel above us in yellow is a constant reminder of this long term bullish trend, so lets keep that in the back of our minds. The gold traders will be trying to get price back up into this channel, while the sellers will be trying to push it back to the PLOD. If we see price move above today’s HOD and the PHOD we then need to consider buying pullbacks and focusing on the buying side.
Major levels of resistance we will use overhead will be 1539.2, 44.5, 48.9, 1551.4 is the PHOD
Major levels of support below us will include 1530.9 LOD, 27.1 PLOD, 22.7, 17.1, 16.2
Lastly, our Big Money Trigger Line (BMT) is a very sloppy area on our charts, and we see this level is at 1538.0 so we will avoid trading around this level.
My plan of attack on Gold is very simple:
- if price rises im selling resistance first, then buying pullbacks with new higher highs
- I will sell the HOD, sell the top of the wedge, sell the PHOD
- I will buy the LOD, buy the PLOD, and buy the lows of the wedge as well as buying support levels on the way down
- If price makes new lower lows I will also sell retracements
- I will avoid trading aronud the OPEN and the BMT levels
- I will not sell the lows or buy the highs
- I will keep an eye on the major levels of support and resistance above and below me as profit targets and potential entries.
