Would you like to take you annual profits within a day ??
This was made possible last nite when Oil surged more than 20%. In a normal bull market, one would be considered good if he can make 10-15% profits a year.
Now, we are talking about making 20% within a day (or a few hours to be precise).
You can see from the 1H chart that price was hovering around 20.94 with a fake breakout on 31 Mar at 1000 hours before price retreats to 20.03 level. On 2nd Apr 0300 hours, it make another attempt to breakout of the support turn resistance level at 20.94 again.
This time, it succeeded but not until President Trump works on his charming tweet and sent the oil price high to 27.32 at 2200 hours.
Now what ?
Price is stuck in a symmetrical triangle pattern which means it can goes both ways, either up or down. It is also facing a resistance at 25 level which has been tough to break out on several attempts. See chart here
I will not trade this for now and have taken all my profits (intraday) and watch the chart for a while. If Oil and equities are positively co-related, then the continuation of the Oil price moving higher would imply the equities market heading higher as well. Short term pull back is alright but not a trend reversal. Not yet imo. Since the macroeconomic factors are not supporting the latter, I will not rush in to long Oil but wait for the data - Non-farm payroll and a few others before making a decision.
It is easy to fall into the trap of FOMO - fear of missing out and not able to join in the party of profits and long and popularity, whatever you are after. Guys, there are always parties to attend to, you missed one , no big deal .The next better ones might be just down the road........
Now, we are talking about making 20% within a day (or a few hours to be precise).
You can see from the 1H chart that price was hovering around 20.94 with a fake breakout on 31 Mar at 1000 hours before price retreats to 20.03 level. On 2nd Apr 0300 hours, it make another attempt to breakout of the support turn resistance level at 20.94 again.
This time, it succeeded but not until President Trump works on his charming tweet and sent the oil price high to 27.32 at 2200 hours.
Now what ?
Price is stuck in a symmetrical triangle pattern which means it can goes both ways, either up or down. It is also facing a resistance at 25 level which has been tough to break out on several attempts. See chart here
I will not trade this for now and have taken all my profits (intraday) and watch the chart for a while. If Oil and equities are positively co-related, then the continuation of the Oil price moving higher would imply the equities market heading higher as well. Short term pull back is alright but not a trend reversal. Not yet imo. Since the macroeconomic factors are not supporting the latter, I will not rush in to long Oil but wait for the data - Non-farm payroll and a few others before making a decision.
It is easy to fall into the trap of FOMO - fear of missing out and not able to join in the party of profits and long and popularity, whatever you are after. Guys, there are always parties to attend to, you missed one , no big deal .The next better ones might be just down the road........
