I see an opportunity to go long here. Oil closed above the previous down candle's high and stochastic show we're on an uptrend, does no one believe in any of this? I believe we're headed towards the 92's
Did a quick long scalp for a profit. CL was going up and broke resistance on market open. Went long market, plan was to go long as previous price trend is long and reports on more violence in middle east. As price went quickly to my target, I sold at market and got a decent scalping profit. Issue for me holding for more profit is that I don't have enough chart action to take a trade based on patterns, and my indicators also need more action to develop. Also, issue is that with fast price action, you can also get fast reversals, and did not want to lose the profit. Goal was to take 1 trade today and 1 only which was accomplished. Also, with my market buy I was waiting for price to go in my direction rather than waiting for a pullback and limit into the order. Before trading Monday, I will reset database for NT since it seems that price on DOM is not similar to price on chart which can cause me to mess up my trading. Of course its possible we did gap up today at open so no candles will show the rise to the price level that I went long. In future I plan to trade ES rather than trade CL when it changes over to a new month since my charts need time to get correct data. To give an example, price might be $ 1 - $ 2 higher on CL for the following month, and just shows up as 1 giant green candle which makes trading it impossible. I will review my current chart later today to see if price continued up without me in the trade. On Friday, I was top picking, and got stopped out bad on a 2 contract trade. However, I did get in on the reversal and held for 30 ticks since I felt that price going up so high and so fast could just as easily go down hard and fast, but Friday was still a losing day overall for averaging into a losing trade and not taking a stop quicker. I do want to take longer swing trades than scalps going forward, but it has to be based on chart signals, and I will scalp when I am not sure that price can reach a higher level target.
Add to that the threat of Libyan civil war, as son of Gadhafi threatened. I don't see much of a downside here midterm. Look to re-enter on a bounce around 9020 or go long if a break of 9100
In with you for a short-term trade. Shoot though, I really wanted to go long at 89.50 for a swing trade.
You don't need chart action, just S/R levels. I've been out all day and missed the open today, but I would've been looking to buy 90.07 (break of the pivot high of the NYMEX close Friday) and my initial target zone would be a test of 90.96 and if that broke, 91.09 was next R, and if that broke, 91.24, and then I have 92.42 after that. Looking at the chart, no reason not to still be long at this point.
I believe the current dead cat bounce (or call it a Democracy Rally, geez) will end up as much-ado-about-nothing just like the Egyptian brouhaha. When the dust settles, we'll be dropping like a brick again. Be that as it may, placing a stop near 92.20-ish.
Libyan tribe threatens to cut off oil from there - what are their numbers in terms of bpd? http://af.reuters.com/article/commoditiesNews/idAFLDE71J0PP20110220?sp=true