FuturesPros Daily Analysis March 4, 2010

[FuturesPros]

Crude Oil Visual Trading Update


Current Trading Plan:

Position: LONG
Last (01-03-2010) Closed position @ 79.00 (+$0)
Long: Since 04-03-2010 at 81.00
Short: Below 79.00
Exit by Stop Loss: 80.10

Technical Indicators Notes:

Last time we said: "No big change. If you consider the move in GOLD, this
asset is in sleeping mode, while being in the same asset class: commodity.
(Look in GOLD commentary for more). We have drawn, two small new trend lines
that show a potential for the downside, and therefore we set our SHORT entry
level higher."

Our LONG trigger was caught, and we are now LONG, with some mental
reservations. It looks like a topping process. This is why our SL is quite
close. The Daily Head-and-shoulders pattern is still alive, but it is
becoming tedious. Look how the move from 69 has a clear 5 wave structure.
This is a plus for the LONG, but we will be much more confident, when the
price will exit the trading range (blue light rectangle).

RSI-STOC Combination: Neutral.
ATR: At a level where volatility starts to increase.
MACD: Daily in a positive setup and momentum but H4 indecisive.

Charts Legend:

Price Window:
Simple Moving Average (20): Green
Bollinger Bands (20,2): Violet
Support & Resistance price areas: Pink and Light Green areas
Trend lines and Channel Boundaries: Blue
Elliott Waves Counts: Black and Blue numbers

Indicators:
RSI (10): Blue, STOC(5,3,3): Green, ATR(5): Blue
MACD (12,26,9): Blue, Signal: Red, Histogram: Green
Indicator trend lines and effects: Magenta

Signals:

Long:  Above the Green line
Short: Below the Red line
Exit position: On crossing the Cyan line
SL in case of triggered level: Dashed Cyan Line

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Futures trading analysis written by Moshe
Shalom for FuturesPros.com. 

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Disclaimer
Trading Futures and Options on Futures and Cash Forex transactions involves
substantial risk of loss and may not be suitable for all investors. You
should carefully consider whether trading is suitable for you in light of
your circumstances, knowledge, and financial resources. You may lose all or
more of your initial investment. Opinions, market data, and recommendations
are subject to change at any time.

[Johnkitty]

Hi! Your information is so useful. But do you think that this is a good future contract for Crude Oil?
Contract Size: 1,000 US barrels or 42,000 gallons.
 
Price Quote & Tick Size: Dollars and cents per barrel; minimum tick size is one cent per barrel or $10.00 per contract.
Contract Months: All months.

Trading Specs:Open outcry on NYMEX runs from 9:00 am to 2:30 pm ET. Electronic trading on Globex runs Sunday through Friday 6:00 pm until 5:15 pm with a 45 minute break each day.

Daily Price Limit:$10.00 per barrel or $10,000 per contract. If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. When trading resumes, the limit is expanded by $10.00 per barrel in either direction. If another halt were triggered, the market would continue to be expanded by $10.00 per barrel in either direction after each successive five-minute trading halt. There will be no maximum price fluctuation limits during any one trading session.