CL Redux

I've never used Fib levels, but I do like to make note of the 50% level of a range because it often acts as its own S/R level in a trend.

So, for example, if price puts in a high, then sells off, and seems to establish support, like this morning into and after the NYMEX open, I calculate the price that would indicate a 50% retracement of that move.

This morning that price level was 104.76.

This helps me set profit targets as well. This morning I had a trade where a ride to the 20-bar EMA also happened to coincide with the 50% retracement level. As a result of this confluence, I chose that level as my profit target.

 

103.33 overnight low was actually the retest of 103.41 made on 2/23. Also take a look at the following chart.

 

60 min bar isn't too late for CL action , given many major events of CL happen on 30 min interval such as pre day action 8:30 to 9:00 EST before 9:30 market open and EIA report 10:30 EST etc..
30 bar chart may give visibility into what happened before and after the major events ..
- but I know it is one's comfort level

here is CL 30 min bars http://bit.ly/eKgaF4

@BEC , when I said asian /over nite session it is out side US stock market hours ..

 

Visaria,

Forgot, but as NoDoji mentioned, the 20 EMA is another thing we keep an eye on as it can act as support or resistance too.

 

Short 104.94

 

Got it.

 

Looking at the daily chart, I see strength. We closed above yesterday's low, we closed above yesterday's close. The 2/24 spike high (103.41) held as a strong support zone in the overnight session.

Friday's bull containment bar was broken with conviction yesterday and today's action closed price almost at the top of that bar.

I've noticed that new highs and new lows tend to get revisited at least once, and 106.95 is sitting up there, waiting. However, it's a bearish bar in and of itself positioned at an extreme like that.

Interesting times ahead.

 

Yes, this is what I was doing on my last few trades. I was convinced it would break out big, so kept being stopped out at b/e, and then going back in.

 

Many thanks BCE and NoDoji for advice on where to take profits. I shall give it some thought.

 

Just curious. I ain't too big on dojis but we've had back-to-back dojis: a gravestone doji followed by a long-legged. Does this supposed to mean anything?