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Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
We have three things to consider today on the crude oil futures 03-11– sideways market from 88.00 down to 86.00
– Narrow Wedge Pattern from 87.70 down to 86.68
– Price channel above us from 88.00 up to 90.00
Our biggest concernt his morning is the narrow wedge pattern, this will cause us to wait for the price to either break out of this wedge, or at least test the highs or lows to give us something to trade with.
The key to a wedge is the WIDER the BETTER. as you can see we are getting very close to the most narrow point of the wedge, beware.
We need to plan on this price breaking OUT of the wedge, and we will follow these rules:
If price breaks new highs I will Buy a Pullback at support
The dollar is rising, so expect crude oil to fall, so look to sell at resitance on the way down, and dont be afraid to sell the highs of 88.00, 87.70 if price tests the highs.
Also keep in mind that if we make new highs we will see the lows of the price channel above 88.00 come into play. If we can get into the channel, then the buyers will be trying to move this price all the way to the TOP of the channel, around
Three things to watch on the gold this morning– Short term price wedge in yellow trend lines
– sideways trading range from 1366.0 down to 1358.6 and then down to 1351.4 (range within a range)
First thing we need to watch is the wedge, it looks very similar to crude oil this morning. the narrower ti gets, the more difficult it will be to see LARGE moves, making trading more dangerous.
The sideways range is next, we need to Buy the lows, sell the highs, and avoid the middle
Sell 1366.0, sell the break below 1358.6, and then sell the break below 1351.4 if we can get there.
Always buy at support, so im buying at the pink trend line below 1344.1, at 1344.1, 1351.4, 1358.6, and then if we break new highs ill buy above 1371.7 above the highs of the channel.
remember though, im not buying the highs, If price breaks new highs I will Buy a Pullback at support
– sideways range below 3500 down 3074
– price channel in pink trend lines above 3600
– wedge pattern in yellow trend lines above 3550 and below 3700
the most important is the wedge pattern because its the most recent, and its the most important because if we’re going to trade today this market will have to trade inside the wedge.
buy the lows of 3500
sell the highs of 3600 (resistance)
sell the highs of 3700 (top of the wedge)
sell resistance and buy support, very simple rule, but tough to follow.
keep an eye on the 3600, if we break above that level, we’re now in the lows of the price channel, so the buyers are expected to push the highs of the channel in the near future.
E-mini Russell Futures
