Falling crude oil prices offer opportunity, Manieri says
With the price of crude dropping like a stone, Jed Clampett wouldn't have been so lucky had he struck oil on his farm in today's world.
The falling price with no end in sight offers a simple trend continuation opportunity. We see that price action has wicked up into a potential reversal area yesterday 2/16, but no worries, there are still opportunities to get involved in the directional market. Premarket data at this time indicates a possible bullish encroachment into the same territory during today's US session.
Wait until price jumps up into the reversal area and offers the greatest risk/reward according to your plan. I think a 1.5;1 would be preferable. Stops will be above the most recent swing, and if price violates that, then the trend may be ending. Our target points aren't set with the expectation of printing new lows, but rather, that price will simply test that same area again, but some choose to have a second target below the lows at a fib extension with stops on the second contract rolled to break even once target one is hit. It's totally up to you.
Benny Manieri
The falling price with no end in sight offers a simple trend continuation opportunity. We see that price action has wicked up into a potential reversal area yesterday 2/16, but no worries, there are still opportunities to get involved in the directional market. Premarket data at this time indicates a possible bullish encroachment into the same territory during today's US session.
Wait until price jumps up into the reversal area and offers the greatest risk/reward according to your plan. I think a 1.5;1 would be preferable. Stops will be above the most recent swing, and if price violates that, then the trend may be ending. Our target points aren't set with the expectation of printing new lows, but rather, that price will simply test that same area again, but some choose to have a second target below the lows at a fib extension with stops on the second contract rolled to break even once target one is hit. It's totally up to you.
Benny Manieri