Crude Oil Day Trading Strategy 07/01/13

Join us HERE.

Marty's PIT Session Levels

Dollar-index-correlation:

Dollar-Index 60-Minute Chart:

Dollar Index 60-Minute

The Dollar-Index is trading inside a bull price-channel this morning which tells us that buying pullbacks is the high percentage trade today, but the recent price-action has made us concerned about the narrow trading-range of the Dollar-Index coming out of overnight trading.  You can see the lower-highs on the 60-minute chart have created a price-wedge at the lows of the price-channel.  We need to beware consolidated Dollar-Index trading this morning, so keep an eye on that.

Dollar-Index 30-Minute Chart:

Dollar Index 30-Minute

The half-hour chart of the Dollar-Index shows a very similar picture this morning, inside the range from last Friday and trading in a very narrow price-wedge.  We can see major support below at 82.977 and resistance above at 83.595.

Crude Oil Futures:

Crude Oil 240-minute Chart:

Crude Oil 4-Hour Chart

The 4-hour anchor chart shows us a strong bull price-channel with a recent price-wedge structure.  We are moving higher this morning on our way to testing the highs of the price-wedge, where we will be looking for a selling-opportunity at the highs between 97.36 and 98.46.  Prices may collapse before we reach these highs, and in that case we will sell short down to a short term profit-target at 96.35 and then 95.75 for the runner profit-target below us.  If we find ourselves at the lows of the price-channel between 95.75 and 95.26 we will also be looking to buy the lows.

Crude Oil 60-Minute Chart:

Crude Oil 60-Minute

Crude Oil hourly chart shows us a strong bullish price-channel with a short term price-wedge that will most likely result in some sideways trading ranges coming out of the overnight London trading Session.  We know the bull price-channel tells us to buy pullbacks for the high-percentage-trades today, so we will look for price to make a new higher-high so we can buy a pullback or if price drops to the 96.54 buy-zone around the lows of the price-channel we will also look to buy these lows as major support.

Crude Oil 5-Minute Chart:

Crude Oil 5-Minute

The 5-minute chart of Crude Oil shows us trading inside the London trading Session just off the highs.  We can see trend lines drawn below as support and overhead as resistance.  If you move this 5-minute to a 30-minute chart you can see the trend lines quite easily coming from above and below.  These trend lines will create a price-wedge that we will use as support and resistance levels to buy support and sell resistance.  One thing we note is the size of the overnight range, which tells us that today’s trading-range is likely to be quite large as well.

Crude Oil VIP Buy-zone Level for today:      96.44 - 96.23

Crude Oil VIP Sell-zone Level for today:       97.42 – 97.21