This is a potential 61.80% reaction buy setup on the 240 min chart of light crude oil futures for the delivery month of November 2018. It will be a $1.5k risk per contract to have a stop beneath the previous gap highlighted in blue. Upon closing higher than the area highlighted in red, a test of previous supply area around 7100 will have increased odds.
Comment:
The gap area shaded in red wasn’t filled, signifying bears control over this market so far.
Comment:
The gap was tested. Closing higher is a sign of bears losing control.
Trade active:
Gap swapped. Bullishness established. Stops beneath 6750, 2R-3R targets ahead.
Trade closed: target reached:
$1.4k profit per contract currently, 2R target achieved, partial profit taking.