Sideways market strategies for day trading crude oil and gold futures

820am EST

– I’m watching the dollar index futures on a 13-range chart and we see the following

o We are still in the strong downtrend on the dollar

o We have an outside trading day, trading below the range from yesterday

o The trading range today is VERY narrow, which is concerning

o We see a head and shoulders price pattern that is telling us to be patient, that the lows are likely to be broken again soon.

o Ill add a price alert indicator to the lows so I know when the lows are being tested.

830am EST

– We see crude oil futures trading sideways off the recent highs, with a trading range from 83.33 down to 82.29

o We see support for a buying opportunity at 82.00 and the trend line which is the channel low

o We see overhead resistance for a selling opportunity at 83.00 and 83.33 if the price tests the highs.

845am EST

– We open the 13range chart on crude oil futures and we see a head and shoulders pattern which shows us 2 trading opportunities:

o If price falls below 29 we will enter short

o If price rises, the ideal location will be above the previous high of day for a long entry

 Day traders and scalpers can feel free trading inside the range from 29 up to 83.09, but keep it fast and short because we expect a lot of chop.

915am EST

– The euro currency future looks very similar to the crude oil, trading sideways off the highs from earlier this week.

– Like any sideways trading range I have two basic options

o I can trade inside the range by selling the highs and buying the lows
o I can trade outside the range by buying the breakout above or selling the breakout below.
o I want to buy support and sell resistance.

935am EST

– Gold futures are trading SO FAR ABOVE the highs of the bullish channel that we have a very difficult environment to trade with

o Many people will be selling these highs expecting the price to drop

o However, there appears to be a bias to the long side of the gold futures, which is causing the market to go sideways

o Professionals wont buy the highs, and rookies and speculators will, so we sit here waiting to see who will control price today.

950am EST

– At this time of the day we begin to notice the market’s distinct personality

– Very slow, sideways, and no speed or BIG MONEY on tape.

– Seeing this information we now begin to formulate a plan of attack

o Wait patiently for the best opportunities today and trade those rather than forcing the lower % higher risk trades.

1000am EST

– E-mini Russell futures are trading in a sideways range well above the range from earlier this week

– We are seeing a potential for a short entry < 85.2 and we notice support at 84.0, 81.3, 78.0, and 74.0 which will act as perfect profit targets for this short trade.

1030am EST

– We have crude oil inventories released and the market goes sideways at the open of the day around 82.64

– We need to wait now fo r the market to move away from the open

– The euro futures are trading sideways at the highs of the trading range from earlier this week so we have 2 options

o Buy the breakout above 78

 My final target will be the trend line (blue) overhead around 90’s

o Sell short with reversal pattern below 54.

 Profit targets of 45, 35, soft 20 and hard final target of 3805

1100am EST

– The markets are VERY slow right now so use extra caution

– Crude oil futures making new swing highs, but still very slow.

– Best option is for the breakout to the long side with entry above 17

– We just saw the attempt to break above 14, but it never triggered, so watch speed and momentum at the time of entry to confirm.

– Profit targets of 27, trend line, soft 75, and hard final target of 84.00 big round number.