Another Range Day (so far)

Trading today was like watching paint dry. Again, price from yesterday formed support and resistance for most of the day (blue arrows). And once again, we had a narrowing consolidation for most of the day with a breakout late in the day.

With the opening gap down (even though it was rather small), I had a bias toward the downside and took a short trade (number 1) at 10:30. I was targeting the lows of the day--around 94.00 but price struggled to get halfway there. I was up over 1R but I ended up selling as price broke above yesterday's low (red dotted line).

I then noticed a narrowing wedge forming and I watched for a breakout. I nearly fell asleep as I waited, but I finally took the breakout (#2) above the trend line and the 200 SMA (red line). Things didn't go my way for nearly an hour. I put my stop below everything that I considered support, but I had to suffer as price dropped and nearly took me out of the trade (solid red line). Fortunately it turned around and I got my breakout to the upside. I took profits right after that big up bar at 2:30 as price began showing some weakness.

I was anticipating a larger move after that big push up. However, price didn't make a new momentum high with that push which should have indicated that this move didn't have the mojo it needed to keep pushing price higher.

It will be interesting to see what happens into the close. This was a rough week if you rely on big moves or trend days for your living. Have a great weekend everyone.