Crude Oil shows 2-sided trading ahead of Opening Bell

Crude Oil Weekly

Crude Oil Weekly:

Weekly anchor chart shows us that prices have tested the highs of the price-wedge and pulled off those highs.  The big wick on this week’s candlestick tells us that prices have moved higher, but failed to stay at those highs, and the green color of the candle reminds us that we opened this week lower than we are at this time. 

Both of these clues tell us this price-action continues to be 2-sided, with a slight bullish tone going into Wednesday’s trading session in the US.

Crude Oil Daily

Crude Oil Daily:

Daily anchor chart shows us exactly what we assumed from the weekly chart.  We jumped up to the highs of the price-wedge early this week, but have since pulled off those highs.  A very interesting aspect to the most recent daily candlestick is the wick at the bottom of the candle, which suggests that prices tried to move lower, but got pulled back higher. 

We continue to see signs of 2-sided market personality on this daily chart.

Crude Oil 4-Hour

Crude Oil 4-Hour:

The 240-Minute chart shows us two big clues this morning.  First, we can see price-action trading around the lows of the price-wedge.  We are reminded to buy the lows and sell the highs of a price-wedge, so we know there will be buying opportunities at these lows. 

Second, we can see that the 4-hour candlesticks could NOT close above the highs of the trigger-zone at 95.78.  This clue tells us the buyers tried and failed, and the trigger-zone is definite resistance in the market, so look for selling opportunities at the trigger-zone.  

Once again we see signs of 2-sided trading this morning as we head into the opening bell.

Crude Oil 60-minute

Crude Oil 60-Minute:

The hourly anchor chart shows us trading at the lows of the bullish price-wedge with a buy-zone below us at 94.40 down to 94.14.  We look for buying opportunities at the lows of any range, so this morning we know the high-percentage-trades will occur to the LONG side.  We can also see two trigger-zones overhead this morning.  

First, we draw our Fibonacci retracement from the 97.34 highs down to the 92.21 lows to get the trigger-zone from 95.38 to 94.78 and we can see that buyers indeed tried to break this resistance but they failed.  We also see the short term trigger-zone above us at 95.24 to 95.03, which tells us that we need to take profit at the 95.03 if we get long at the lows of the price-wedge, and to look for another price-reversal inside the trigger-zone for a possible short trade later in today’s session. 

Crude Oil 5-Minute

We know that a 5-Minute candle close above the 95.03 will be very bullish, and a 5-Minute candle close above the 95.38 will mean the buyers are now back in control, however we have a very difficult time buying into the highs of the price-wedge so we will be looking for selling opportunities at the highs of this price-wedge.