Stock, Option and Futures Trading
CL Update + Scalper
From our last CL update we were looking for a potential buy near the $100.00 level. Our last long signal was $99.60 and there was a +3.36 move after that signal. If the CL would have came back down into the $100 and then went to green we could have had another long signal but CL stayed weak in the correction and dove down to the $92.00 area.
At the low at $92.00 we have 3o and 60 minute blue bars so that tells us that we have high odds of making a move back up to the $98.00 level. If $93.00 low holds we are looking for a target of $98.00 looking for at least two waves to be in the move up.
With a pattern like this it is normal to have sharp moves to the downside that will seem like they come out of nowhere. Knowing that if you are trading CL up to $98.00 have your stops in and scale out with profits as you go so you can lock in profits even if it is only on half your positions.
We would look to only scalp the CL the next few days. If you are new to scalping the CL know that .30 cent moves happen very fast so it is important to only take the bigger wave trades even if you are only scalping. You can see from the Turbo Scalper chart in this post we are looking for the major waves on our scalper chart. Doing this will slow down your trading so you are not negative trying to make back a loss. We want all of our confirmations to line up with a major wave. These type of trades actually take less heat and have more profit opportunity.
Corrections are the hardest waves to trade because the waves overlap one another making it more emotional.