FuturesPros Daily Analysis March 4, 2010

[forexpros2]

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.