Oil And Trading Trends

Hey Traders,

So many of you saw me scream Oil long at the latest killer PA zone.

That was due to a tremendous fall and the smart money being left to jump in. Not only did you have such a decrease in price due to reduced MKT upside sentiment but you have a mixture of tech factors to use too. Bouncing at areas where buyers exist based on PA and the fact you are reaching higher MA's delivers a good area to get long (if you want a deal)

The recent rebound in price is showing minor downside weakness hence lack of movement. Sentiment is poking Oil up but overall trend both technical and sentiment wise remains down. See the highlighted area for such risk averse longs that naturally come higher in retracement within a larger move.

If you can understand this market, you won't have an issue understanding any other in terms of news and sentiment. We want to investigate both the long and short term picture of any asset and what that means both currently and in the future. That is what indicated the enormous short fall from highs; the unsustainable market value of oil that had to come thundering down.

Factually, markets swap round due to a change in trader appetite based on news and that's why you need to track it within trends like this. Likely a higher retracement will occur due to the magnitude of the previous fall and lack of downside sentiment with latest supply side reduction news.

Trade it small trade it safe and check Oil sentiment regularly.

Comment:

New kill zone exists around 93$