Crude Oil Morning Prep; Screen to Floor 05/03/13

Crude Oil 4-Hour

Crude Oil 4-Hour:

The 240-Minute anchor chart shows a close of the most recent candlestick just below the sell-zone overhead.  This big wick at the top of the 4hour candle is a bearish clue which will lead us to look for selling opportunities as we make new lower-lows.  Any time we test a sell-zone and fail to close inside that sell-zone we are assuming the buyers were weaker than the sellers, and we will then look for selling opportunities using a faster timeframe, such as a 5m chart.  This 4hour chart shows us a big profit-target at 92.18 and we will use that for a runner profit-target today if we can get short at 800am EST.

If prices move higher this morning we will be looking for a 5-Minute candle close above the 95.15 area.  A 5-Minute candle close above this sell-zone will signal us to get long with a profit-target up at 97.01.

Crude Oil 30-Minute

Crude Oil 30-Minute:

Our 30-Minute Anchor Chart shows us many clues.  First we can see the sell-zone overhead at 94.46 has been tested and price is moving lower.  This is a selling clue that we will use to get short on the 5m VIP chart.  Our profit-target for the short is 93.60 and a runner profit-target at 93.05.

The Plan Today:

I’m trading short from the London Highs down to 94.12 target and a runner target at 93.60 down to the London session lows.  I will be looking to buy in the bullish reversal zone at 93.56 and 93.26 assuming this doesn’t run into Non-Farm Payroll news this morning at 830am EST.  Remember, we can buy the lows and sell the highs of the London trading Session (3am -7am EST) and use the reversal zones above and below the London trading Session for easy fake-out-breakout ‘zones’ to look for price-reversals.

Crude Oil 5-Minute VIP

The biggest obstacle this morning will be Non-Farm Payroll news at 830am EST.  This BIG news report may change the market personality dramatically if this news comes out unexpected and catches everyone off guard.  I will have to sit-on-hands 15 minutes before and after this news release, and I need to stay patient to look for the NEW short-term trend that develops after the news.  I cannot try to predict the news, I need to wait and react to what we see around 845am EST.