Note how the Average True Range has declined the last 3 days. 3.22 on 1/22 2.55 on 1/23 2.06 on 1/26 1.74 on 1/27 today.
Note also how crude hasn't been overbought since September using 11-day CCI.
There are bullish divergences on this test of the early January low and anytime the market can lift from a divergence means there could be a lot of stops just over the market. I would exit when CCI reaches +100 and save some longs for when it gets to +200.
I know I'm going to get plenty of "hate" replies for this idea, but even if I lose on this trade I will win with lower heating oil and gasoline prices at the pump. So, view this as a hedge if you have to. Or view it as a "free trade".
Good luck.
Tim 6:09PM EST 1/27/2015 45.67 last on CL1! (Front Month Crude Futures)
Comments
timwest
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The blue arrow shifted when I published it. The RgMov indicator has been pointing down the whole way down until lately it is slowly rising.
AMBRISH
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I LIKED YOUR IDEA ,
AMBY
timwest
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Thanks Amby
ruebennase
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Hello Tim from Germany,
do you have a price target for a Long Trade @WTI??
Regards.. Manni
timwest
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It has already gone under the low of the box and nullified the setup this morning - but if it goes over the top of the box later today, keep the stop the same. Upside target is 2 and 3 times the width of the box. So, I am going for 2x to 3x my risk on this trade.
Mr_DL
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Yep, I reckon UCO has bottomed a day ago.
Justiceisfalse
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Price/action the last 2-3 days has been positive to the long setup. Sellers can't seem to find anymore stops to run on the downside....