Crude Oil Morning Prep; short term selling and long term buying opportunities

Crude Oil daily

Crude Oil Daily:

Our daily anchor chart shows signs of buying pressure this morning with a big green candlestick headed higher to test the sell-zone at 96.00.  We know that this week has been 2-sided and today is OPEX Friday so we know that anything can still happen this morning, but this is certainly a bullish clue to get us started today.

Crude Oil 240-Minute

Crude Oil 4-Hour:

The 240-minute chart of Crude Oil shows only a minor pullback before this most recent move higher into the sell-zone at 95.65 this morning.  We have plenty of supply entering the market around the big-round-number of 96.00 so we will be looking for the buyers to fail and a selling opportunity to go back lower later this morning.  We also must note that there is a trend line above us which has NOT been tested yet this week.  We can assume the buyers are going to be shooting for this trend line, so we will stay patient and wait for a selling opportunity either in the sell-zone or at the trend line resistance. 

Crude Oil 60-Minute

Crude Oil 60-Minute:

The hourly anchor chart shows just how far we've come since earlier this week, including that we've broken the highs of a bear price-channel and pushing into the trend lines above it.  The bear price-channel reminds us that this price-action can collapse at any time this morning, and we've projected a price-reversal zone above us at 96.72 which will be an excellent location to look for the high-percentage shorts later today or early next week. 

This recent higher-high is a very bullish clue so we can expect to see the buyers keep trying to push this price-action higher this morning, which we will be watching closely for signs of a price-reversal and a selling opportunity. 

Crude Oil 5-Minute

The Plan Today:

The day trading plan this will use the London trading Session as our biggest short term clue.  We can see that price-action has traded up to the highs of the London trading Session and we've now seen price-action fall off these highs, which we will take as a selling opportunity to get short.  Our profit-target for the short trade will be 95.29 and 95.00 near the price-channel support.  Ideally, we would sell the highs of this range and take profit all the way at the lows around 94.79 but this morning we have a trend line (price-channel) to worry about, and considering it’s a Friday we will be taking our profit a little earlier than other days of the week.

If price-action pushes higher this morning look for a price-reversal all the way as high as 96.06 but a 5-Minute candle close above 96.06 and we now look to keep pushing higher this morning.  I would expect price-action to move lower in the short term, and I will be watching closely for the test of the 95.29 and a strong price-reversal to take this price-action back higher to test the levels we found above us at 96.23, 96.41, and 96.79.