breakoutfakeout

US Crude oil short. 30 min divergence play

Short
TVC:USOIL   CFDs on WTI Crude Oil
US Crude oil has seen a bit of a run up to the trendline and has now put in a strong divergence on the 30 min chart and is overbought on the hourly. We also now have a lower high on the hourly charts and moving averages are still sloping downwards. We could see a retracement back down to the low of the triangle and a fakeout breakout before a move higher.

These types of divergence plays are my A* trades with an 80-90%% success rate. I prefer them on the hourly chart as 30 min doesn't give much time movement potential however this one is worth a shot. There is some support though so if we take out the high or the MACDH turns positive bouncing of support I would expect a strong move higher. This nearly always happens when these divergence plays fail, so really its a win win situation. Either we get to short profits or we can reverse for a decent long.
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Trade active: Closed 75% of profits at the first swing low (underneath 5 min 200ema), trading each swing now of the 5 min charts
Trade closed: target reached: Closed all shorts, profit target reached. I don't really trade breakouts, looking to reverse and go long around here

About me: I'm a professional retail day trader (trading since 1993).

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