Gold & Crude Oil futures is giving us some BIG CLUES

830am EST

Gold futures made a great move off the bullish AB=CD Pattern support
at the lows of the price wedge on Thursday and Friday morning.  We are testing the trend line resistance that
comes from the AB=CD Pattern and we know that we should take profit on the long
position, and look to hold the runner up to the 1602.0 for the final target.

If you did not enter this trade long, we need to be very
careful re-entering a trade this morning because we’re in the middle.  Trying to be a buyer on gold futures will be
almost impossible until we clear above this trend line. The high-percentage
trades on gold futures will be selling this trend line resistance or sitting on
hands if the price action and market personality is too sloppy.  

The biggest clue we get is the price wedge.  We’re in the middle of the wedge and this is
always going to be the sloppiest location. 
Be patience to buy the lows/support and sell the highs/resistance of the
price wedge, which means today we may not see any opportunities at all.

Crude Oil futures is giving us some BIG CLUES on this
144-range chart.  First, we can see the
short term price wedge and we have the BIG candlestick wick (inverted hammer)
which tells us the buyers were indeed there trying to push higher to 88.03 but
they failed, and we can assume the price wedge is the reason for the buyers failure.  

With that said, the second big clue is the
FAILED bullish AB=CD Pattern above the ‘C’ point at 86.50 and when we break the
C we expect a re-test of the A.  in this
case, the test of the resistance at 88.03 is almost a guarantee.  

The final clue is the OUTSIDE DAY, above the PHOD
we know the buyers tried, and they have failed. 
When we go above the PHOD we assume the buyers have reason to believe
price is too cheap, and if the price goes back below the PHOD that is
considered a buyers failure, and the price wedge highs are holding, and the AB=CD
Pattern is also holding. 

Our day trading strategy for Crude Oil this morning will use
these three clues.  

What if price moves higher?  We
will buy pullbacks using our wave-pattern LONG to enter into rising prices with
the profit target of 88.03.  we will then
look to sell the 88.03 and bring the price right back down.  What
if price moves lower?  If we see
failures at the highs and price moves down, we will sell the price wedge highs,
and sell below the PHOD.  The high-percentage
trades will be short as soon as we see these buyers fail.  What
if price goes SIDEWAYS?  If we see
sloppy and sideways ranges on top of the price wedge and trend line resistance we
need to assume the confidence is not there, and we need to sit on hands until
we see new higher-highs or lower-lows to earn our confidence in the trade.