Possible Bullish Scenario on Crude Oil.

NYMEX:CL1!   Light Crude Oil Futures
First, let's start with context. The price has been moving sideways for the last 60 days on a key level where we have observed reversals in the past, as well as continuations after clear consolidations.

The Primary Bullish target from where we are right now is 145.00.
The Primary Bearish target is 80.00.

How can we know which of them will be the right one? The answer is "We don't know" That's why I always get ready for 2 possible scenarios.

This is an idea of how I'm thinking about long positions on Crude Oil. As you can see, the main element here is the Risk to Reward Ratio, which is 3. That means that if I'm stopped two times, and I'm right one time, I will still make a profit. ALL my strategy goes around that concept.

However, on the bearish side, this would be the setup I'm interested in:

REMEMBER: We do not control the outcomes of the market. However, we do control planning our setups in advance, managing risk, and looking for setups with a great risk to reward ratio.

What are your thoughts on Crude Oil? Let me know in the comments.


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