$13.8K PROFIT: Shorting Crude Oil AM Session Highs Into KEY Support Level
- Anthony Speciale
- Sep 16, 2024
- 5 min read
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Hey Trader,
The Power of Peace in Your Trading Journey
In the fast-paced world of trading, maintaining peace can often be a challenge.
Yet, peace brings clarity, wisdom, and stability—qualities essential for success.
As you navigate the markets, remember the value of a calm, peaceful heart.
Seek peace not just in your trades, but in all areas of life, and you'll find that true rewards follow. Wishing you peace and prosperity!
Be Relentless In Pursuit Of The Will Which God Has Set Upon Your Heart,
Anthony Speciale
$13.8K PROFIT: Shorting Crude Oil AM Session Highs Into KEY Support Level
In today’s market session, Crude Oil stood out as the primary focus amidst sluggish performances in the Nasdaq, S&P 500, and Gold.
With the looming anticipation of the Fed funds rate announcement, set to release on Wednesday at 2:00 PM EST, much of the market hesitated to make significant moves.
However, Crude Oil delivered a calculated push higher, offering an excellent opportunity for retail traders to benefit from both a breakout and a well-timed reversal.
Let’s dive into today’s trade analysis and see what lessons we can extract to apply to your future trading setups.
The Setup: Crude Oil’s Calculated Push
Early in the session, Crude Oil made a decisive move, driven by technical patterns that pointed towards a strong upward push.
During the overnight session, the market formed a double top—a key resistance level that typically signals a potential reversal or breakout.
As the market opened around 8:55 AM EST, Crude Oil retested this resistance and then made a sharp move upwards, breaking past both the prior day’s and prior week’s highs.
This push higher brought the market into a congestion zone, where price began to stall as sellers stepped in to absorb the buying pressure.
From this point, I was able to identify a potential reversal opportunity, setting the stage for the next part of the trade.
Reversal Setup: Capitalizing on the Move Back Down
After Crude Oil hit a significant resistance area, it began to retrace.
The market’s inability to sustain its push through the prior week’s high at $70.34 signaled that the reversal was in play.
We monitored the price action closely, watching for a break back below this key level.
Sure enough, the market broke down, retesting $70.00 and eventually targeting lower levels at $69.60 and $69.10.
What made this trade particularly rewarding was how calculated the reversal was.
After the initial breakout, the reversal was smooth and predictable, allowing traders to take advantage of the shift in momentum.
For retail traders, recognizing these moments of reversal can be a powerful tool, especially when combined with disciplined risk management.
Why I Skipped the Long Trade
It’s worth mentioning that while I identified the initial long trade (the push higher), I chose not to take it.
Why? I didn’t sleep well the night before, and part of my trade plan involves avoiding early morning trades if I’m not mentally sharp.
This is a critical reminder for traders—knowing when not to trade is just as important as knowing when to enter a position.
While I passed on the long, my clients had the opportunity to take the trade as I walked them through the setup live.
Even though I didn't execute, the lessons from this trade were clear, and it provided a valuable learning experience for those watching.
The Short Trade: Execution and Profit
After passing on the long trade, I focused on the short setup during the reversal.
I entered a short position around $70.51 as Crude Oil started to lose steam.
My target was the $70.05 area, with potential follow-through down to the $69.60 range, which materialized later in the day.
I’ll include a video of the trade in the accompanying blog post.
This will give you a clear view of my entry, the risk I took on, and where I took profit.
You’ll also be able to see the footprint chart I used to confirm my short trade, which further reinforces how well-calculated the reversal was.
For those of you following along, I encourage you to analyze the trade and see if my methodology resonates with your style.
Understanding how I manage risk and read market structure can offer valuable insights into refining your own approach.
The Importance of Sticking to Your Trade Plan
One of the key takeaways from today’s session is the importance of sticking to your trade plan.
Trading when you’re tired or unfocused can lead to mistakes, and it's crucial to recognize when you're not in the right mindset to execute.
This is a core principle I follow, and it’s one that can help retail traders avoid unnecessary losses.
Had I forced the long trade this morning without feeling 100%, it could have led to suboptimal decisions.
Instead, I waited for the clearer reversal setup, which ultimately paid off.
Today’s session may have only produced one trade for me, but it was a highly profitable and well-calculated move.
Identifying two setups—one long and one short—allowed my clients to benefit from the full range of market opportunities, even if I only personally executed the short.
Remember, trading is about patience, discipline, and timing.
There’s always the next day, and the markets will continue to offer opportunities for those who are prepared.
Stay informed, stay focused and stay disciplined ! ! !
Thank you for reading, and I look forward to seeing you in our next session . . .
God bless, and have a wonderful day!
If you have any questions or need further guidance, please don't hesitate . . . info@specialeanalysis.com May the markets be ever in your favor!
Happy Trading,
Speciale Analysis
About the Author:
Anthony Speciale is a seasoned market analyst with over 13 years of experience trading. Through his platform, Speciale Analysis, he offers in-depth market analysis, interpretation, and expectations designed to help all types of traders, at every skill levels reach their full potential.
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NOTE: Trading involves significant risk, and it's essential to approach it with a well-defined strategy and a disciplined mindset. This blog post is intended for educational purposes and should not be considered financial advice. Always conduct your own research and consult with a professional before making an financial decisions. For further risk related information, please refer to: www.specialeanalysis.com/disclaimer
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