CL Trading day November 7 2017 PM

posted in: Market Recap 0

Market Context :

  1. Day, month and week up trend.
  2. Short term inventory long. ( last accumulation pivot 57.10 )
  3. Overnight inventory neutral.
  4. Yesterday last distribution ( 56.96 – 57.42 ).
  5. Yesterday’s spike ( 57.41 – 57.61 ).

I had three key levels to monitor at the open :

  1. 57.61 ( Spike high and yesterday’s high ).
  2. 57.42 ( Yesterday’s last distribution high and Spike low.
  3. 56.96 ( Yesterday’s last distribution low ).

The open ( 57.26 ) showed low conviction as we traded four times across it in “A” period. The opening was also inside yesterday’s last distribution rejecting yesterday’s spike so yesterday’s last distribution high and low became the trading range to monitor.

Inventories were not really in focus today as the overnight inventory was considered as neutral ( worst case slightly long ) and short term inventory was long with very small accumulation at yesterday’s last distribution area.

All day long we were rotating inside that range with two buying opportunities around the 56.96 level and three selling opportunities around the 57.42 level.

The key factors to be taken into consideration for today’s trading were :

  1. Low conviction at the open.
  2. Open inside yesterday’s distribution.
  3. Inventories were not a factor today.

These factors were increasing the odds of rotation favoring a buy low sell high trading strategy.

 

Good Trading !