July 19, 2012
- in Uncategorized by schooloftrade
Dollar Index and Crude Oil Futures Technical Analysis
815am EST
The dollar index tradedlower off the highs of the price wedge the last 24 hours, and we find ourselves
in the middle of the range and just below the PLOD.
With the dollar index below the PLOD this does tell us the sellers are
in control, so using the negative correlation we are looking for buying
opportunities today. Keep an eye on the trigger-zone
support which is right below and remember that dollar index support is
synthetic resistance on the markets we trade.
So if we’re trying to get long using the falling-dollar index we know
that at some point this price on the dollar index may reverse and we will be
able to sell the highs of the ranges we’re in markets like Crude Oil, E-Mini-Russell,
euro, gold futures.
845am EST
CrudeOil trading higher this morning above the PHOD making this an outside day
within this wide price wedge structure. We can see the bull price channel and we’re
trading right at the highs of this price channel. The highs of the price channel are considered
resistance, however, remember this is a bull price channel so selling the price
channel highs will be desirable but the high-percentage trades will come buying
the lows of the price channel.
The day
trading strategy for Crude Oil today is to buy pullbacks with new higher-highs however
the resistance at the price channel highs may spoil the fun. We may have sloppy wave patterns going higher
and we may not be able to participate into this resistance. We would rather sell these highs, so we’re
looking for the wave-patterns to fail, the market personality to change, the
speed slows down, and we will be able to take a price reversal trade short off the
new highs.
