Crude Oil Day Trading Strategy Morning Prep

Dollar-Index 240-Minute

Dollar Index 4-Hour

The Dollar-Index has tumbled off the highs from late last week, down to major support at 82.790.  The Dollar-Index has resistance overhead at 83.785 and additional support zone below at 81.545.  we will be watching for the Dollar-Index to rise or fall this morning, which will tell us the best DIRECTION to trade on Euro, Gold, and Crude Oil Futures.

Crude Oil 240-Minute

Crude Oil 4-Hour

Crude Oil pushed all the way up to 107.45 during the overnight trading session and this morning we are seeing a strong pullback before we find out where we are going next.  We can easily assume price will pullback before it tries to go higher, but we need to use a faster timeframe to find the specifics of where price-action is most likely to go this morning.

Crude Oil 60-Minute

Crude Oil 60-Minute

Now we can see the exact price locations we will be watching on Crude Oil today.  The hourly chart shows us the strong bullish price-channel along with support levels at 105.83, 104.88 and 103.41 below us.  With this bull price-channel we know that buying pullbacks with new higher-highs is where the high-percentage-trades will come today, so we need to wait for one of these support levels to hold and then trade long after we see a price-reversal to move higher. 

Another option this morning is to sell short off the highs, and we will look for entry short below the 105.45 level on this chart and a profit-target of 104.88 on the way down.

Crude Oil 5-Minute

Crude Oil is trading at the lows of the London trading Session this morning, which means we are bullish at this support level right now.  There are some big clues on this 5-minute chart. 

First, we can see that the buyers failed to keep prices above the highs from Wednesday at 106.95.  This is a very bearish clue, and we expect to see prices attempt to re-test the LOWS from Wednesday at 104.25. 

Second, we can see the price reversal-zone is being tested right now at 105.75 which means we are bullish at this support level in the short term.  If we buy these lows we will use the trend-line overhead as the profit-target along with the 106.58 and 107.30 for your runner profit-target. 

The third clue we see on this 5-minute chart is the 105.30 support level just below the price reversal-zone.  If we can trade below 105.30 we will be looking to sell retracements short with a profit-target at the PLOD of 104.25.  Remember the 60-minute chart gave us a bullish price-channel, so look to buy the 104.25 area if we can get a price-reversal at the lows of this range today.