Crude Oil Morning Prep; Screen to Floor 05/16/13

 Crude Oil Daily:

Crude Oil Daily

The Daily chart of Crude Oil shows us the big drop over the last 2 days and this morning we have ‘bounced’ higher off the trigger-zone support at 92.65.  As we’ve said all week, a daily candlestick closing below 92.65 will signal the sellers are in control and price-action will trade lower to 90.53.

Crude Oil 4-hour

The most important thing this daily anchor chart shows us is the wide open space to the up-side and the support to the downside.  We know the door is wide open for the buyers to bring this price-action all the way back up as we go to OPEX Friday.  We also know that the sellers are going to have to work very hard to break to new lower-lows and KEEP those lows.

Crude Oil 60-Minute:

Crude Oil 60-Minute

The hourly anchor on Crude Oil shows us trading in a strong bearish price-channel and we know this is telling us to sell the highs of this price-channel for the high-percentage-trades this morning.  If prices rise this morning we will sell short at the highs of the price-channel and if prices can push up to 94.29 or 94.44 we will also look for selling opportunities there as well.  We know the high-percentage-trades occur selling the resistance around the highs of the price-channel so that is where we are looking this morning.

The Plan Today:

The day trading plan this morning on Crude Oil is to trade higher up to 94.23 (see 5-minute chart) and then we will look for clues from market personality to see if the buyers want to keep pushing higher up to the 94.44 level (also the PHOD) or if the buyers are going to exhaust and move back lower once they test 94.23.  we expect prices to rise in the short term, most likely to 94.23 and then show us a price-reversal for a selling opportunity back down.  We may also see prices keep going higher, and if they make it above (and stay above) the 94.44 we know the buyers will be in full control and we will be buying pullbacks on the way higher.

Crude Oil 5-Minute

Also remember that at any moment this price-action can reverse on us because we all know the market personality of Crude Oil can change in a split-second.  With 3 major news events at 8:30am EST this morning we know that this price-action may get very interesting today as we head into the opening bell at 9:00am EST.