August 30, 2011
- in Uncategorized by schooloftrade
Price Wedge & Bull Channel make for easy day trading Crude Oil Futures
We may see a slower than normal Tuesday with the FOMC Meeting Minutes at 2pm EST this afternoon.
We assume a lot of the BIG MONEY will be sitting on hands waiting to see this report.
800am est
Crude Oil Futures look very consolidated here this morning after the big pop up on Monday morning we’ve been trading sloppy and sideways ever since.
We get some easy clues on crude oil:
Bull Price Channel on the 89range chart tells us to be buying pullbacks with new higher highs and buying at major levels of support as price falls.
Price Wedge tells us to buy the lows and sell the highs, avoiding the middle and be looking for the fake-out breakouts.
Inside day tells me a lot of the same as a wedge, sell the PHOD, buy the PLOD and trade inside the range we are in currently.
If price breaks above the PHOD we then start buying pullbacks and if price breaks below the PLOD we begin selling retracements.
Crude Oil is falling this morning, so we want to beware the middle of the range, and look to sell retracements with new lower lows, taking profit at the support levels below us.
Keep an eye on buying opportunities as price falls considering the bull price channel we have on the 89range chart.
825am est
Gold Futures looks very similar to crude oil this morning with its bull channel, price wedge, and easy levels above and below as support and resistance.
Bull Price channel reminds me to buy pullbacks with new higher highs and buy at support as price falls.
Price Wedge reminds me to sell the highs and buy the lows, avoiding the middle and beware the fake-out breakout.
The big round number of 1800.00 has been a major price magnet so look for that and the BMT 1791.0 to be a good place for a final target as you sell the highs of the range.
We got some easy clues on gold futures this morning:
Price Wedge tells me to sell the highs and buy the lows of the wedge.
Inside Day just turned to an outside day, and we can use this as our guide.
If we fail at the highs and fall below the PHOD this is a strong clue to start selling these highs.
If we keep moving higher above the PHOD this is another strong clue that buyers are in control and we look to buy pullbacks, however, taking profit at the next level of overhead resistance.
As we rise im selling at resistance overhead first, and then buying pullbacks with new higher highs.
As price falls im buying at support first, and then with new lower lows I can sell retracements.
We have plenty of resistance levels overhead that will be excellent places to sell with a 2-step pattern short.
We have plenty of support levels below us which we can use to buy with a 2step pattern long.
We need to avoid the middle of the range and remember the big round number 1800 and the BMT 1791 will be excellent targets for our short trades.
900am est
Euro Futures are giving us easy clues this morning:
We know the market personality on the Euro has been sideways and range-bound, so we know how to profit from this structure.
Price Wedge tells me to sell the highs and buy the lows, avoiding the middle.
Sideways Range gives me support levels to buy if price drops, and resistance levels to sell if price rises.
The biggest challenge today will be staying patient and avoiding the middle, waiting to buy the lows and sell the highs.
935am est
Russell Futures are trading at the highs of the bull channel so this is an excellent place to be a seller.
We also have the highs of the price wedge and the highs of the sideways range, so lots of reasons to be selling new lows with retracements.
BMT down below 700.00 will make an excellent price magnet if we start to really tumble.
Russell Futures give us some easy clues today:
Inside day reminds us to buy at support and sell at resistance first. Then if we break the support or resistance we then look to sell new lows with retracements and buy new highs with pullbacks.
1015am est
1000am Consumer Sentiment was lower than expected.
This is gold bullish so we are buying pullbacks with new higher highs.
Crude Oil bearish so selling new lows with retracements.
The market personality is certainly changing after the news.
We can see lower highs, higher lows, and price action is stuck around BMT’s and other price magnets.
