Crude Oil Morning Prep Day Trading Strategy; Screen to Floor 07/16/13

Weekly News Worksheet

Crude Oil 240-Minute:

The 4-hour anchor chart shows us trading in a sideways-trading-range this morning with the highs at 107.45 and the lows at 104.31.  We can see two trigger-zone support levels below us at 104.79 and 103.99 which tells us the sellers will have to work hard to get this price-action to move outside of the range to the downside.  We can also see trend-line support below us, and a symmetry pattern that projects us higher to 109.50. 

This is just a snapshot of our Morning-newsletter which is posted every trading day at 8:00am EST in our Members Section.

Crude Oil 60-Minute:

Crude Oil 60-Minute

The hourly chart shows us much more detail about this sideways-trading-range.  We can see resistance overhead at 106.78 and 107.45 along with support levels below us from the bull price-channel and the trigger-zones.

It’s important to note that the trigger-zone at 105.69 is a technical ‘John-Henry Set-up’ which means we have new higher-highs with one pullback into trigger-zone #2, and now we can buy the 105.69 trigger-zone #1 at 105.69 to get long for a very high-percentage-trade today.

No matter what pattern you use to get into your position this morning, we know that buying at support levels will be the best trading opportunities because of the bull price-channel.  We want to buy pullbacks with new higher-highs, and if price pulls back to the lows of the price-channel we are looking to buy the lows.

Crude Oil 5-Minute:

Crude Oil 5-Minute

The 5-minute VIP chart shows us price-action trading in the middle of the London trading Session range so we are waiting patiently for a breakout.  We can see trend-lines drawn from swing-highs and swing-lows to create a short term price-wedge structure.  We know the long-term trend is pushing HIGHER this morning so we want to buy pullbacks for the high-percentage-trades today.  If prices drops to the lows of the range we want to buy at the 106.30, 106.07, and 105.90.  If prices pushes higher we need to break above the 106.85 PRZ-Trade level to begin looking to buy again.

PRZ-Trade today:

Long @ 105.90

Short @ 106.85

PRZ-Trade Management:

Stop-loss @ 20ticks, profit-target at 45ticks