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Day Trading Morning Prep Gold, Crude Oil, Dollar Index, Euro, E-mini Russell Futures
The Dollar index is dropping to new lows this morning after making a strong move to new highs late in the session on wednesday.We watch the Dollar Index Futures Correlation closely throughout the trading day.
Crude Oil Futures
Crude Oil has had quite the rollercoaster ride this week. We’ve seen highs and lows, this morning seeing price back to that BIG round number of 100.00- Big Round Number 100.00
- Price Wedge in Yellow trend lines
- Sideways Trading Range in white boax
- Previous HOD/LOD
- Bearish Price Channel
First, im looking at the 100 level and im worried that today may be sloppy around this difficult area. I will be trading AROUND 100.00 today.
We then notice the bigger price Wedge Pattern and we can plan to buy the lows and sell the highs. Look to sell the 101.89 highs with a Price reversal pattern and buy the 97.00 lows of the price wedge.
Next, remember where the PHOD and PLOD levels are, pretty much the HOD is the same, and we have not re-tested the PLOD.
I would expect the buying to continue if we break above the PHOD, so look to buy a pullback above 100.00 to continue with that move to new highs.
We have not seen the PLOD tested again, so this is certainly somthing I will look to buy if price drops to those lows again today.
And lastly, dont forget about the two price channels.
bearish: If we break back below 99.00 we then enter into this channel from the highs. A long term move will be to sell the highs of the channel, take profit at 97.00 (the lows of the wedge) and then look to manage the final position down to the lows of the channel, to 95.00, even down to 94.00.
bullish: the 100.00 level is the high of the most recent bullish price channel, so look to sell the highs aronud 100.00 and buy the lows around 97.00.
- Big Round number 1400.00
- Sideways Range in white box
- PHOD and PLOD levels
- Yellow trend lines define the major wedge pattern
- Dotten yellow trend lines define the two price channels
The first thing I notice is the big round number, and knowing its thursday of OPEX this may be a stumbling block for gold today. I will be trading around this number, avoiding entries around the number.
Next I focus on the sideways market from 1406 down to 1380. I also notice the PHOD and PLOD levels have NOT been tested yet.
trading a sideways range is easy. Buy the lows, sell the highs, and avoid the middle
Selling 1406 is the PHOD and the highs of the sideways range. Buy the PLOD of 1380 which is also the lows of the sideways range.
Dont forget to avoid the middle, which looks to be right around the OPEN of the day, which is another red flag.
Its clear to see this morning will be best traded at the highs or the lows of this range.
Next we see the highs of the price wedge in thick yello trend lines, I will look to sell the highs of 1417.5 and even 1429 if price gets up that high today.
On the flip side, buy the lows of the wedge around 1386.0, which is also the lows of the bearish price channel.
Keep an eye on those two price channels in yellow trend lines. We want to buy the lows and sell the highs of the channel as well.
