Bearish. We don't buy until we see a buy signal!
If something is "cheap" or cheaper than X time before, doesn't mean it can not get even cheaper! If something is bearish, that is bearish. And we simply do not buy bearish price action, not even if we see price reached some supposed Fibonacci or subjective horizontal "support" levels. There are no guarantees these supposed support/resistance levels work precisely.
Trading is about odds and discipline. If someone buys WTI now, or at 42, that is simply bottom fishing, and gambling. Sometimes it works short term (and then obviously gives a false feedback of "success" to the gambler), but in a strategic perspective it just can not work well in the long run!
For now just let it fall. Then let it swing back. Who cares? If you are short, it is OK, stick to your rules and trail your stop loss in case. Maybe even add to your shorts on spikes.
If you want to buy Oil, then just wait. Wait until you have at least some higher probability signals of a bottom, for example:
- Heikin-Ashi momentum loss around possible major weekly supp/res zone
- no lower low, or rather a higher low on the daily chart.
- Daily Kijun Sen going flat again
- Price close above daily Kijun,
etc.
Weekly:
- Ichimoku neutral
- Heiin-Ashi is bearish with increasing momentum!
- EWO down to neutral
- MACD crossed down (value above zero) -> not bullish any more
Daily:
- Ichimoku is bearish: price has been below Kijun for long time, now it is also below Kumo. As you saw in my previous posts, we had early warnings weeks ago in form of bearish Senkou cross (forward Kumo twist). Forward Kumo is going even more bearish now. Actually all averages point down!
- Heikin-Ashi is bearish
- EWO is bearish with increasing momentum
Trading is about odds and discipline. If someone buys WTI now, or at 42, that is simply bottom fishing, and gambling. Sometimes it works short term (and then obviously gives a false feedback of "success" to the gambler), but in a strategic perspective it just can not work well in the long run!
For now just let it fall. Then let it swing back. Who cares? If you are short, it is OK, stick to your rules and trail your stop loss in case. Maybe even add to your shorts on spikes.
If you want to buy Oil, then just wait. Wait until you have at least some higher probability signals of a bottom, for example:
- Heikin-Ashi momentum loss around possible major weekly supp/res zone
- no lower low, or rather a higher low on the daily chart.
- Daily Kijun Sen going flat again
- Price close above daily Kijun,
etc.
Weekly:
- Ichimoku neutral
- Heiin-Ashi is bearish with increasing momentum!
- EWO down to neutral
- MACD crossed down (value above zero) -> not bullish any more
Daily:
- Ichimoku is bearish: price has been below Kijun for long time, now it is also below Kumo. As you saw in my previous posts, we had early warnings weeks ago in form of bearish Senkou cross (forward Kumo twist). Forward Kumo is going even more bearish now. Actually all averages point down!
- Heikin-Ashi is bearish
- EWO is bearish with increasing momentum
