WTI had a significant rally after bottoming in Dec. Many traders wonder if its time for a sizable correction or if this bounce is over.
I believe that there are evidence on charts that suggest rally to continue at least to $63. Details are presented on this chart. I CANNOT suggest to enter new long position here at the top of rising wedge but if you already long I think keeping at least a portion of original long position may bring more money.
Some traders who can accept the risk may try to enter long on a break of top wedge line.
Also, I would like to mention Bollinger Bands hint. We broke high made on Feb 04, 2019 which was printer in NARROW BB area. Usually this suggests rally long top border of BB with middle 20SMA work as support.
IF this 20SMA get broken - that is our first indicator of a weakness of the price. I would advise to get out of long position and wait until WTI finds support at approximately $50 where rising wedge started.
I will be updating this idea as we go. Any comments or criticism are welcome in comments.
I believe that there are evidence on charts that suggest rally to continue at least to $63. Details are presented on this chart. I CANNOT suggest to enter new long position here at the top of rising wedge but if you already long I think keeping at least a portion of original long position may bring more money.
Some traders who can accept the risk may try to enter long on a break of top wedge line.
Also, I would like to mention Bollinger Bands hint. We broke high made on Feb 04, 2019 which was printer in NARROW BB area. Usually this suggests rally long top border of BB with middle 20SMA work as support.
IF this 20SMA get broken - that is our first indicator of a weakness of the price. I would advise to get out of long position and wait until WTI finds support at approximately $50 where rising wedge started.
I will be updating this idea as we go. Any comments or criticism are welcome in comments.
Comment:
This idea is still valid. We are just waiting for correction to be completed near $55 level. Which was expected. We can see by now that correction is sideways, so I am not anticipating any big downward move. Here is how updated chart looking right now. It is bullish in my opinion.
Trade active:
Today we finally broke the high after long sideways consolidation. My Elliott Wave analysis shows we are in wave 3 of C which does NOT offer much of re-trace, so let's just sit and watch until our target of at least $63 get hit to collect profits.
Also I have made a candlestick analysis which suggests break out and higher prices ahead. Explanations in attached screenshot.
Good luck with your trades!
Also I have made a candlestick analysis which suggests break out and higher prices ahead. Explanations in attached screenshot.
Comment:
This trade take a lot more than anticipated but we are moving in right direction. Time to ensure the profit by placing trailing SL at comfortable level. Also, I think part of position can be taken at 200SMA at $61.50 and let the rest run with trailing SL till original target of $63.
Trade closed manually:
We are cents away from 200SMA. It is time to take some profits and let the rest run with trailing SL to original target.
Trade closed: target reached:
SUCCESS. Today we were 4 cents away from $63 wti target. Imo 4 cents doesn’t count. We can close the trade before news come out. Or at least tighten trailing SL.
