Trade of the Day

Today’s trade was an Oil Sept. Contract and it was a buy signal from a price of 67.43 at 6:50 am PST.  We placed a buy contract one tic above the high of the circled green bar because it is a reversal that comes after the five consecutive red bars that closed lower.  The yellow X shows the the Moving Averages crossing over to change to an upward trend and along with the support of the Parabolic SAR red triangles we have multiple buy signals.  The price had tested the resistance level of 67.50 earlier but hadn’t crossed it yet, so that was an initial target price and once it was broken, then it turned into a massive support.  After the price took off to the 68.00 level, we could move our stop loss just under that level to lock in a profit of $500.  As the price continued it’s slow upward progress, we would now look to slowly move our stop loss along the lower edge of the Parabolic SAR after it reached 68.00 until the price hit 68.50 and then onto 69.00 where the SAR was finally broken.  Alternatively, once we have our stop loss locking in $1000 profit around the 68.50 level, we could switch our stop loss to follow along the blue Moving Average line where it would be triggered just above the 69.00 level in the yellow oval for an additional profit compared to the SAR stop loss.