Battle of the Price Points

Wednesday: February 10th, 2016

Crude Oil Futures Day Trading

The movie reference is the one of John Travolta playing the Angel Michael … God’s Warrior Angel. This is kind of how the Crude Oil Market is like to trade … a battle of price points.

Right now it is 9AM CST and we are 30 minutes out from the Crude Oil Inventory Report Release. I have set up for a 10 to 1 to start the trade off today. I will follow behind with the stop loss, then a trailing profit stop on a winning trade.

There will only be 1 trade setup and entry today!

Stick to your plan!!

You are roughly $500 away from Max Drawdown at this point in time. The crude oil market has been able to almost retrace to yesterday’s settlement price after a selloff this morning during trading. Yesterday’s settlement price is 2794 so very interesting to see us move back. In addition, we made a new low trading today at 2739, which is lower than the previous daily low of 2756 set on January 20th, 2016.

As I place the Fib Extension on the charts to help with Price Action, what I see is 100% located at 2609 now.

On the other side of the equation, what we now see in Price Action is a possible retracement back to 3116 on the Crude Oil Daily Charts.

So the battle is between 3116 and 2609 now. Which will come first?

By the way, I was able to capture 85 ticks on one trade yesterday …

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I will add some trading charts on my trading day below:

About The Author

David M. Knight

I am a 30 Year Futures and Commodities Trading Veteran. In addition, I enjoy games of skill and chance like: poker, craps, blackjack and roulette. During my professional career, I have developed and implemented successful trading strategies and methods; along with winning systems in games of skill and chance. Join with me on our mutual journey together.