Here you will find the most recent trade levels released today in the Market Dimensions Advisory. This update is showcasing the MDA SnapShot levels with potential buy and sell zones for you to consider executing starting your trading day. If you would like to further discuss these trades do not hesitate to contact me directly. If you are not getting these updates sent to your inbox each morning, please subscribe HERE. To see all MDA updates (morning & intra-day levels, trade recaps, educational material) visit my blog page HERE.
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Published 8/8/16 11:18 am central:
We have seen some volatility in the Crude market recently. With us breaking below $40 on the front month crude and us now bouncing back near the $43 level. If you recall we looked at the Dec16/Dec17 crude spread back in June and were able to catch the downside momentum on that trade. Crude spreads are something that I watch everyday even if I am not sending updates on them. We saw this spread continue to move lower past our target exit price and break below the -4.00 prices. The spread then moved back toward the -3.00 price level and on this most recent move to the downside in crude we challenged the -4.60 lows, with this most recent sell off in crude. With the $39 price holding in front-month crude we have bounced higher back near $43 on the September front month. This has caused the Dec16/Dec17 spread to move higher as well. We are now trading back above the -4.00 near -3.88 to -3.75 today. If we take the most recent high we had in this market and the new lows we just put in, you can see that we are right near the 50% retracement line. I have highlighted this in chart #2
Looking at the Daily Levels on this WTI Dec16/Dec17 crude spread, you can see we have just recently had new levels form and we are leaning on the previous levels that were formed. Since TAS Navigator is such a strong Red bearish level, I am looking for levels to sell this contract. A good time is when we enter zones that are potentially Top Zones that can be leaned upon as resistance. we are currently hitting these zone now as outlined on the Daily Snap Shot Chart below. The sell zone on the chart show -3.88 as the top zone, so selling at that price or better will be recommended. The market has put in a high today @ -3.74 so you should be able to get better pricing on this spread at this time.
As for risk on this trade, I would start off using the previous sell zone or high outlined on the chart from our past levels near the -3.00 price levels. Depending on where you get filled this could be around 85 cents risk or $850 per contract. Another level to consider is the -3.50 price level if that will hold. You could look to exit the market if we make a close/settlement above that zone. Feel free to contact me to discuss risk.
As for the Target, depending on how many positions you are putting on we may have a few partial exits along the way to lock in profits or update risk, but we are looking to target the bottom zone highlighted on this chart near the lows @ -4.60
More on Spreads:
If you are new to futures spreads and would like to learn more why we trade spreads, I suggest you research them on our website as we have many articles, webinars, and videos covering them.
If you would like to see my previous write-up on this WTI spread that we did the end of June. I also included some benefits about trading this spread in that article. Have a look again at it with this link:
Below you will find the 2 charts mentioned above. Click images for larger new window:
MDA SnapShot Levels – Daily Chart WTI Crude Dec16/Dec17
MDA SnapShot Chart: Daily Chart Showing 50% retracement
Market Dimensions Advisory – Free Edition - Market Dimensions Advisory leverages insights gained from working with professional traders, commercial clients and institutional businesses paired with an understanding of market relationships, order flow and trading volume, along with news, trends and seasonal info, to give you a "3D view" of trading. Market Dimensions Advisory – Free Edition includes an email newsletter subscription. The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
Subscribe to Market Dimensions Advisory – Free Edition
Market Action Scanner
Market Dimensions Advisory – Free Edition - Market Dimensions Advisory leverages insights gained from working with professional traders, commercial clients and institutional businesses paired with an understanding of market relationships, order flow and trading volume, along with news, trends and seasonal info, to give you a "3D view" of trading.
Market Dimensions Advisory – Free Edition includes an email newsletter subscription.
The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
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