Market Commentary 8/24/11 Schooloftrade.com
Crude Oil Futures: 89Range chart shows us a bull price channel, price wedge, and asideways range.
We know the bull channel tells us to buy pullbacksand to buy at support if price falls.We also know the wedge tells us tosell the highsand buy the lows of the range.We also know the sideways market tells us the same, buy the lows, sell the highs, and avoid the middles.We need to trade within the range using the sideways market and the wedge, and then looking at the BUYINGopportunities at the lows, or with pullbacks at new highs as thehigher percentage trade.We then open our 34range chart and begin looking for intra-day levels.We have aninside day, so this tells us more about themarket¶s personality.
Our plan of attack today on crude oil:-
Bull Channel tells us to be buying pullbacks with new highs-
Buy at support as price falls with a bull channel-
Price Wedge and the INSIDE DAY both act the same. As price falls we buy the support, and as price riseswe sell at resistance.-
Avoid the middle of the range as best we can, i know its narrow out there-
Be patient and wait for the best opportunities early this morning-
Watchthe 3 Phases of Crude Oil Inventories -
Be disciplined not to over-trade too early to the news or too late with themajor news tomorrow.
Gold Futures:Gold 89range has a bear channel that is now intersecting the major bull channel.We have to beware that the bull channel is more important, so when the bear channel collides with these lows weneed to wait for price to make a new lower low to be able to use the bear channel.This also creates a price wedge using the bear channel highs and the bull channel lows.We also see a sideways range, with major resistance overhead and major support below us. Now let¶s use the 34range to find our intra-day levels.We see a very narrow range on gold 34r chart and compared to a wide range from Tuesday we see this as anINSIDE DAY that is even more concerning. Is the market tired? Or is it just looking/waiting for a catalyst thismorning?We can see more price wedges, which goes hand in hand with the INSIDE DAY personality.Our plan of attack on Gold:-
Beware the narrow price action, looks very sloppy and consolidated