Opportunity To Buy Lows On Crude Oil Futures

Crude Oil Futures:

– Weve made this big move down from 80 to 76, and now we see the sellers exhausted, we trade sideways, and we can see an opportunity to buy the lows of this trading range with a 2-step long

– Entry above 63 on crude oil with a first target of 76.85 (1/2), and a final target at the trend line overhead

– Don’t forget to read the tape looking for excessive speed, large buyers, and momentum on the 21 and 13 range to confirm the buyers are still in control at the test of the trend line. If we see buyers at the trend line, push that final target to 77.12, which is the LOD from yesterday.

Crude Up-Date:

-We now see an inverted head and shoulders candlestick pattern forming at the lows of the trading range around 76.00.

-Seeing this bullish reversal pattern, we are looking at an aggressive entry long above 77.00, but since we see the previous day’s LOD at 77.12, we know our trade management will be more difficult at 77.0 long

-More conservative entry will be to wait to get above the PREV LOD and enter long 77.37 to make sure we have a clear line above us.

-Targets above 77.00 will be 35 (1/2), 55 (1/4) and then all the way up to 78.50 for the highs of the range and the trend line as resistance.

-If I take my entry above 77.37 my targets are 55 (1/2), 85 (1/4) and then all the way up to 50 for the final target

Gold Futures:

-We made a huge move up, filling all three profit targets on the trade called last night on the blog (see swing trading gold on the blog)

-Now we are trading at the highs of the trading range, and we see a head and shoulders candlestick pattern at the highs, telling us to keep an eye on the reversal to the short side.

-Entry short below 1213.8 for a more aggressive entry with first target at 1212.5, or my entry will be below 1212.3 for a more conservative entry short on the gold futures.

-Profit targets are easy to see, first target at 10.3 is the swing high from yesterday’s HOD, and second target is the trend line below us around 1208.0, and then final target is the yellow line (auto levels double-bottom) and a trend line around 1206.0 (1/4)

-Don’t forget the long side….

-We break into the channel above us, we now want to buy these lows, but remember to make sure we see a pattern first, I cant just buy the lows without a swing high and then the trigger above that swing high above 1218.5

-We will most likely see the 1218.5 tested, but it will be hard to tell when to enter long, so use a faster timeframe for a more precise entry, and don’t be afraid to skip the first move up and trade the reaction.

-Look for the wave long entry after we break into the channel above.