Horseshoe Pattern, Price Channel & Outside Day made for easy profit on crude oil futures

We had lack-luster news at 815am ADP Employment, this will be US Dollar Bearish.

Crude Oil Futures continue to tumble this morning on lack of global demand coming from the economic slowdown. We’re sitting on Major support at this time (92.71) and looking to make new lows again today. We can see the Bull channel in pink was broken a week ago and new this bear price channel in green has taken shape. We can see levels of support marked below us, and our plan of attack today will be to use this strong bear channel as our guide. Selling at resistance as price rises up, and selling retracements with new lower lows will be the highest percentage trades this morning, while keeping an eye on the major support levels below us as excellent profit targets and potential reversal points for us to buy at support.

If price rises up today on crude oil we have a price wedge above 93.86 so look for buyers to enter the market above that area.

Gold Futures continue into record-breaking territory this morning as traders and investors around the globe see no end in sight for this economic slump, less demand for any growth and more demand for ‘shelter’ from falling prices in Gold futures.

The key to trading gold right now is staying away from these highs and waiting for price to come back down to major support levels looking for buying opportunities there.

I’m looking to buy the lows of this bull price channel, as well as price levels such as 54.3, 34.6, 18.8, 12.1, 08.1, 05.7 and so forth. The key is not getting emotional with your trading at the highs, very sloppy, and difficult anything big at new highs, so wait for the big pullbacks and buy at major support.

The Euro Futures are trading in the middle of the narrow price wedge and we consider this to be a big red flag for things to come this morning. The only thing worse than this would be if the US Dollar Index was in a similar position (middle of narrow wedge) so we need to be careful today until price can move higher or lower on the Euro contract. You can see the bullish price channel in pink trend lines, so look to buy at support as price drops and buying pullbacks with new higher highs above 4438 today as the higher percentage trades. If price drops we’re buying at major support 4130, 4115, 4085, 3990, 3920 etc. and if price rises up we’re selling resistance first of 4438 and then buying above that levels as we will be back in our bull trend channel.

Key today will be patience to wait for price to move from the middle of this wedge. Get us up to 4438 or down to 4130 and we see lots of opportunities to trade there.

845am est

Crude Oil:

930am est

We wait for the US Markets to open for more volume and some personality this morning on the crude, gold, euro, and Russell.

We took our first trade of the day on crude oil, selling the highs of the bear channel, but price action very sloppy going into the 930am area of our day.

We notice a flat trigger line on the 34range chart of Crude, and this reminds us that INSIDE DAY’s have fake-out breakouts, and we should be buying the lows and selling the highs.

945am est

We sold the highs of the price channel as resistance for 5 winning trades coming down to the PLOD.

We know now the personality on crude oil is just as described for the inside day.  Beware the fake-out breakout, and sell the highs, buy the lows…do NOT expect big powerful moves until something changes.

1000am est

We see the LOD is tested on crude and the sellers fail at 10am news.

We are trading outside day (selling breakouts) when we are below the PLOD and we trade inside day (avoid the breakouts) when we trade above the PLOD.

We are trying to understand WHO CONTROLS price.

1045am

Easy trading with bearish news on crude oil inventories.  Price falls to new lows and we sell retracements on the way down.

Also grabbed the lows of the channel for a price reversal long trade buying support.