August 10, 2011
- in Uncategorized by schooloftrade
Fake-out breakout on Crude Oil leads to BIG profits today
815am est
· If price rises higher I’m buying pullbacks above 83.05 using the bull channel
· If price keeps rising I’m going to take profit at the next level of resistance and then look to re-enter with new higher highs and another pullback
· I will be looking for price to stall at the highs and then look to sell a price reversal once we see the buyers start to fail.
· I will look to avoid trading around the BMT 84.83, however we use the BMT as your profit target to the long side.
· If price falls I’m looking to buy at support first, and then if the support is easily broken then i look to sell a retracement.
· I will also look to buy the channel lows and since this is a bullish price channel this is the highest percentage trade today.
· If price breaks through the lows of the channel I’m buying support below the lows at 77.64, 77.27, 76.07, 75.73
· Remember the line in the sand is 77.64 and then 77.27 for entering back into the bear price channel below us. Then we must look for sellers.
We open our 34range chart on the Crude Oil and we see even more information (clues) from the market:
· Inside day, failed to break above the PHOD already once today
· When we fail at the PHOD this means we may see the PLOD tested today, it will go from top of the range to the bottom.
· Inside day tells us to buy the lows/support and sell the highs/resistance and avoid the fake-out breakout.
· Notice there is a thick yellow trend line defining a previous wedge around 82.20 where it appears we may be trading this trend line. (beware)
920am est
Personality was great for the first 45 minutes and now the big moves to the downside are very sloppy and without any follow through.
SO we want to keep our profit in our account, so let’s sit on hands, wait for some better price action and then continue trading.
1015am est
We look at the Gold Futures 34range chart and see a strong bull channel, so buy the lows of the channel at 71.2 area for the highest % trade this morning.
You can also buy new higher highs with a pullback, however, beware the fake-out breakout with the gold personality very sloppy around the all-time highs.
1030am est
Inventories are all lower than expected, and demand is lower than expected.
Price should drop on less demand
