Crude Oil Morning Prep; Screen to Floor Analysis 05/06/13

Join us every Morning at 7:30am EST for our daily morning prep, from the Screen to the Floor!

Crude Oil Daily

Crude Oil Daily:

Our daily anchor chart shows us testing the highs of the major price-wedge structure and into the 97.02 sell-zone overhead.  We can see the big candlestick wick on Monday’s daily candle which leads us to believe that we have made new higher-highs but have failed to keep prices at 97.00 big-round-number level and we may see prices’ falling in Monday’s trading session.

Crude Oil 240-Minute

Crude Oil 4-Hour:

The 4-hour anchor chart illustrates how price-action filled the wide open space between the 95.12 and 97.01 sell-zones, making it look easy for prices to keep pushing higher after a brief pullback on Monday morning.  This price-action should pull back into the trigger-zone support at 95.38-94.95 and then we will be looking for clues around 95.00 to see if this pullback is a true price-reversal and headed back down to the 94.27 buy-zone. 

Crude Oil 60-Minute

Crude Oil 60-Minute:

We can see that Crude Oil prices have pulled back off the 97.20 highs overnight and into the trigger-zone support at 96.00 and have still kept dropping.  We can assume, using this chart as the biggest clue, that price-action will continue to move lower into the 95.58 buy-zone.  We will be selling short this morning down to 95.58 with a 5-Minute candle close below the 95.91.  We will also look for buying opportunities at the 95.58 buy-zone with a bullish close in this zone.  As prices move lower, a 5-Minute candle close below the 94.95 trigger-zone support will get us back into the short side looking for a big move down to 93.60 buy-zone below.

Crude Oil 5-Minute VIP

The Plan Today:

I’m trading short this morning down to 95.50 for a partial profit-target and a runner profit-target down at 95.15.  My stop-loss is a 5-Minute candle close above the London Lows of 95.91 and I will then look to get long back up to the price-channel highs and the runner profit-target at the London highs of 96.46.