Trade of the Day

Today’s trade was an Oil Jan. contract with a buy order from a price of 51.41.  The price had been moving in an upward trend before moving back towards the Moving Average lines and to test the Parabolic SAR red triangles.

The yellow circled bar that closed at the same price as it opened is our buy signal as it has the same high as its previous bar and had tested the Parabolic SAR red triangles but was unable to break through that level.  We would place a buy stop order just above the high of that bar at a price of 51.41.

Once in the trade, the price made an initial $200 move upwards but then returned to test the Moving Average blue line as it broke through the Parabolic SAR red triangles.  If we followed our rules and had our stop loss order below the low of a previous pullback then the yellow line should be that point and the price did not manage to come back to that low to stop us out with a loss.

From that point on the price moved upwards with each bar having a higher low until it reached the obvious price target of the major support/resistance level of the white line at a price of 52.00.  Once the price hit that level it started to consolidate moving sideways until there was a spike upwards that immediately returned with the next bar.  At that point we should have our stop loss at least up somewhere near the yellow oval.

That would give us a profit of at least $600.