Crude Oil Day trading strategy; Screen to Floor Morning Prep 08/19/13

Crude Oil News Today

Contract Rollover Alert:  we have rolled forward to the next front-month contract for Crude Oil Futures this morning.  We are now trading the 10-13 contract as of Monday morning. 

Crude Oil PIT Levels

Crude Oil PIT Direction

Crude Oil 30-Minute VIP Chart:

Crude Oil 30-Minute VIP

Crude Oil is trading lower this morning as we open the new week of trading opportunities in our live trade-room at 8:00am EST.  We can see the bullish price-channel and the lows of that price-channel around 106.56.  Furthermore, we can see additional support levels below us at 106.15, 105.89, and 105.60 which will all be used for a price-reversal and a buying opportunity later today.  We will be looking for clues that the sellers have lost control as we go lower before we get the price-reversal off support.

Crude Oil Anchor Chart 1:

Crude Oil Anchor Chart 1

We can see two (2) price-channels this morning on this slowest of the anchor charts, the 5400-tick.  We can see the long-term trend has been bearish with lower-lows and lower-highs, however, recently we’ve seen this short term bullish price-channel develop towards the highs of the long term price-channel.  Notice we have resistance at 107.41 and 108.07, as well as support levels below at 106.30 and 105.52.  These levels of support and resistance will be key to looking for price-reversal points in the market today, as well as great profit-targets.

Crude Oil Anchor Chart 2:

Crude Oil Anchor Chart 2

The 1800-tick anchor chart shows us a little more detail this morning.  We can see the bull price-channel and a recent trend-line from swing-highs above us have created a small price-wedge towards the lows.  We can see price-action is currently testing the 106.87 support level with additional support at 106.56.  This tells us that we are currently trading in major support at this time, which means we will expect to see this price-action stop moving lower and potentially reverse and move higher from here.  Price-action may also tumble through this support and then move down to the next levels at 106.12 and 105.86 where we will once-again look for a price-reversal and a buying-opportunity.

Crude Oil Entry Chart:

Crude Oil Entry Chart

The 600-tick chart of Crude Oil shows us getting ready to test the PLOD, which is always an excellent place to look for our first trading opportunities of the morning session.  We will look for a price-reversal around the PLOD for buying opportunities and if price-action goes through the PLOD we will then look for selling-opportunities as we push lower.